What Price Would You Pay Today for a Stock If

question 34

Multiple Choice

What price would you pay today for a stock if you require a rate of return of 13%,the dividend growth rate is 3.6%,and the firm recently paid an annual dividend of $2.50?

• A) $27.55
• B) $30.28
• C) $26.60
• D) $31.37

---

Definitions:

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, characterized by diverse cultures, languages, and histories among its countries.

Collectivism

A cultural or social outlook that emphasizes the importance of groups and collective identity over individual action or identity.

Individualism

An orientation in social philosophy that emphasizes the precedence of personal discretion over collective or governmental oversight.

Narcissism

A personality characteristic involving excessive self-love, lack of empathy for others, and a need for admiration.