What Should Be the Current Price of a Share of Stock

question 13

Multiple Choice

What should be the current price of a share of stock if a $5 dividend was just paid,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:

Reality Therapy

A counseling method focusing on current issues and how to solve them, advocating for responsible behavior and fulfilling relationships.

Responsibility

The obligation to act correctly and make decisions that reflect an awareness of the impacts on oneself and others.

Existential Therapies

A group of psychotherapeutic approaches that emphasize dealing with existential questions and concerns, focusing on themes such as freedom, death, existential isolation, and meaninglessness.

Unconditional Positive Regard

A concept in client-centered therapy postulating that the therapist accepts and supports the client, no matter what they say or do, helping clients to feel more comfortable and open with their feelings.