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The Red Bud Co

question 30

Multiple Choice

The Red Bud Co.just paid a dividend of €1.20 a share.The company announced today that it will continue to pay this constant dividend for the next 3 years after which time it will discontinue paying dividends permanently.What is one share of this equity worth today if the required rate of return is 7%?


Definitions:

Reverse Integration

A strategy where a company integrates backwards in the supply chain, taking over some roles of its suppliers or distributors.

Political Behavior

Activities undertaken within an organization that are aimed at using power and influence to obtain personal or organizational goals.

Individual Factor

Refers to personal attributes and characteristics that influence behavior and performance in a work setting.

Personality

A stable and unique pattern of traits, characteristics, and resulting behaviors that gives an individual his or her identity.

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