DT Industries Stock Is Valued at $10

question 17

Multiple Choice

DT Industries stock is valued at $10.40 a share.The firm pays annual dividends at an increasing rate of 2.5 percent annually.Next year's dividend will be $1.05 per share.What is the required return on this stock?

• A)10.00 percent
• B)11.50 percent
• C)12.60 percent
• D)13.50 percent
• E)14.80 percent

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Definitions:

Realtor

A real estate professional who is a member of the National Association of Realtors and adheres to its code of ethics.

Agency Relationship

A fiduciary relationship where one party (the principal) grants another party (the agent) the authority to act on their behalf in transactions.

Property Owner

An individual or legal entity that holds legal title to and has the right to use, control, and dispose of real property or land.

Independent Contractor

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.