Ewert Enterprises' Stock Currently Sells for $30

question 16

Multiple Choice

Ewert Enterprises' stock currently sells for $30.50 per share.The stock's dividend is projected to increase at a constant rate of 4.50% per year.The required rate of return on the stock,r_s,is 10.00%.What is Ewert's expected price 3 years from today?

• A)$31.61
• B)$32.43
• C)$33.26
• D)$34.81

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Definitions:

Cold Objects

Items that are at a low temperature, potentially causing a decrease in temperature of anything they come into contact with.

Merkel Disks

Specialized skin cells that function as mechanoreceptors to sense touch and texture.

Pacinian Corpuscles

Specialized nerve endings in the skin and visceral organs sensitive to pressure and vibration.

Meissner Corpuscles

Specialized nerve endings found in the skin that are responsible for sensitivity to light touch.