Which of the Following Amounts Is Closest to What Should

question 40

Multiple Choice

Which of the following amounts is closest to what should be paid for Overland ordinary equity? Overland has just paid a dividend of €2.25.These dividends are expected to grow at a rate of 5% in the foreseeable future.The required rate of return is 11%.

• A)€20.45
• B)€21.48
• C)€37.50
• D)€39.38
• E)€47.70

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Definitions:

Donee Beneficiary

An external party that gains advantages from an agreement established between two different parties.

Delegation

The process of assigning authority and responsibilities to others to carry out specific activities or tasks.

Assignment Effective

The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.

Obligor

A person or entity legally obligated to provide a payment or service to another under the terms of a contract.