Suzi Owns 100 Shares of AB Stock

question 73

Multiple Choice

Suzi owns 100 shares of AB stock.She expects to receive a $238 in dividends next year.Investors expect the stock to sell for $46 a share one year from now.What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%?

• A) $38.19
• B) $42.63
• C) $40.53
• D) $45.77

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Definitions:

Macrophage

A large phagocytic cell capable of ingesting and digesting bacteria and cell debris. Macrophages are also antigen-presenting cells.

Acetylcholine

Acetylcholine is a neurotransmitter involved in many functions including muscle activation, heart rate regulation, and the modulation of brain function.

Graded Potential

A shift in electrical charge across a neuron's membrane, varying in magnitude, that can initiate an action potential if it reaches a threshold.

Action Potential

A rapid, temporary change in a membrane potential across a cell's membrane, leading to the transmission of nerve impulses.