Renew It,Inc

question 23

Multiple Choice

Renew It,Inc.,is preparing to pay its first dividend.It is going to pay $0.45,$0.60,and $1 a share over the next three years,respectively.After that,the company has stated that the annual dividend will be $1.25 per share indefinitely.What is this stock worth to you per share if you demand a 10.8 percent rate of return on stocks of this type?

• A)$6.67
• B)$8.21
• C)$10.14
• D)$11.47
• E)$12.03

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Definitions:

Heterozygous

Possessing unlike alleles for a particular trait.

Down Syndrome

A genetic disorder caused by the presence of an extra 21st chromosome, leading to developmental and physical changes.

Disjunction

The separation of chromosomes or sister chromatids during cell division, leading to the distribution of genetic material into daughter cells.

Chromosome 21

One of the 23 pairs of human chromosomes, an extra copy of which is associated with Down syndrome.