Periscope Adventures Last Annual Dividend Was $0

question 28

Multiple Choice

Periscope Adventures last annual dividend was $0.63 a share.The firm will increase the dividend by 7 percent for the next 4 years and thereafter increase the dividend by 4 percent annually.What is this stock worth today if the required return is 11 percent?

• A)$10.38
• B)$11.06
• C)$11.30
• D)$13.97
• E)$14.08

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Definitions:

Motivator

An internal or external factor that stimulates desire and energy in people to be continually interested and committed to a job, role, or subject.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others.

Composition

The way in which something is made up or formed, including the structure or arrangement of its parts.

Cohesiveness

The degree to which members of a group are attracted to and motivated to stay part of that group.