Sales Company Paid a $1

question 103

Multiple Choice

Sales Company paid a $1.00 dividend per share last year and is expected to continue to pay out 40% of earnings as dividends for the foreseeable future. If the firm is expected to generate a 10% return on equity in the future, and if you require a 12% return on the stock, the value of the stock is

• A) $17.67.
• B) $13.00.
• C) $16.67.
• D) $18.67.

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Definitions:

Flashbulb Memory

An extremely precise and vivid memory of the moment and the surrounding circumstances when one hears surprising, significant, or emotionally stimulating news.

Flashbulb Memory

A highly detailed and vivid memory of an emotionally significant moment or event, which is retained with clarity as if it was a photograph.

Vivid

Producing powerful feelings or strong, clear images in the mind, often used to describe memories or descriptions that are very clear and detailed.

Visuospatial Sketchpad

A part of short-term memory that deals with the handling of visual and spatial data.