What Should Be the Current Price of a Stock If

question 65

Multiple Choice

What should be the current price of a stock if the expected dividend is $5,the stock has a required return of 20%,and a constant dividend growth rate of 6%?

• A) $19.23
• B) $25.00
• C) $35.71
• D) $37.86

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Definitions:

National Identity

The sense of a being part of a collective based on shared characteristics, culture, language, and history.

Guernica

A renowned painting by Pablo Picasso, depicting the bombing of the Basque town of Guernica during the Spanish Civil War, symbolizing the tragedies of war and the suffering it inflicts upon individuals, particularly innocent civilians.

Pablo Picasso

A Spanish painter and sculptor, known for co-founding the Cubist movement and for the variety and innovation of his work across different periods.

Caudillo

A military or political leader in Spanish-speaking countries, often associated with dictatorship or authoritarian rule.