A Certain Stock Is Expected to Pay Dividends of $12

question 124

Multiple Choice

A certain stock is expected to pay dividends of $12, $19, $15, and $21 for the next four years. If the required return on the stock is 14 percent, what is the stock price?

• A) $47.70
• B) $67.00
• C) $45.67
• D) $49.88
• E) $46.67

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Definitions:

Environmental Uncertainty

The unpredictable nature of external forces that can influence an organization's operations.

Structural Characteristics

The identifiable attributes, components, or configuration that define the makeup or construction of a system, organization, or object.

Level of Readiness

The degree to which an individual or organization is prepared and able to take on a specific task or change.

Delegating

The process of assigning responsibility and authority to someone else to carry out specific activities, while the person delegating retains ultimate responsibility for the outcome.