What Should Be the Stock Value One Year from Today

question 48

Multiple Choice

What should be the stock value one year from today for a stock that currently sells for $35,has a required return of 15%,an expected dividend of $2.80,and a constant dividend growth rate of 7%?

• A) $37.45
• B) $37.80
• C) $40.25
• D) $43.05

---

Definitions:

Unanimous Written Consent

Unanimous Written Consent refers to a legal document that indicates the agreement of all members of a board or group on a decision without the need for a formal meeting.

Limited Partners

Investors in a limited partnership who have their liability for the debts of the business limited to the amount they have invested.

Partnership Agreement

A contract between business partners outlining the terms and conditions of their partnership, including responsibilities and profit sharing.

1976 RULPA

The Revised Uniform Limited Partnership Act of 1976, a set of laws adopted by various U.S. states to govern the formation, operation, and dissolution of limited partnerships.