A Share of Common Stock Has Just Paid a Dividend

question 13

Multiple Choice

A share of common stock has just paid a dividend of $2.00.If the expected long-run growth rate for this stock is 5.0%,and if investors' required rate of return is 10.5%,what is the stock price?

• A)$35.39
• B)$36.30
• C)$37.23
• D)$38.18

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Definitions:

Fort Ticonderoga

A historic fort in New York that played a significant role in the American Revolutionary War after being captured by American forces in 1775.

Territorial Rights

Legal and political rights concerning the ownership and governance of a specified area or land.

Appalachian Mountains

The Appalachian Mountains are a mountain range in the eastern United States, extending from Alabama to Newfoundland, known for their natural beauty and biodiversity.

William Howe

A British Army officer who served as Commander-in-Chief of British forces during the early years of the American Revolutionary War, known for his command in the Battle of Bunker Hill and the capture of Philadelphia.