Diets for You Announced Today That It Will Begin Paying

question 62

Multiple Choice

Diets For You announced today that it will begin paying annual dividends next year.The first dividend will be $0.12 a share.The following dividends will be $0.15,$0.20,$0.50,and $0.75 a share annually for the following 4 years,respectively.After that,dividends are projected to increase by 4 percent per year.How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.5 percent?

• A)$11.67
• B)$11.94
• C)$12.78
• D)$13.50
• E)$13.86

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Definitions:

Two-Factor Theory

A psychological theory proposing that emotional experiences arise from a combination of physiological arousal and cognitive interpretation of that arousal.

Different Emotions

Diverse affective states that humans experience, such as happiness, sadness, anger, and fear, each characterized by unique psychological and physiological responses.

Interpretation Of Situation

The process of understanding and giving meaning to a particular circumstance or event through analysis.

Autonomic Nervous System

The part of the peripheral nervous system that controls the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.