Precision Engineering Recently Announced That Its Next Annual Dividend Will

question 41

Multiple Choice

Precision Engineering recently announced that its next annual dividend will be $1.20 per share with later dividends increasing by 2.5 percent annually. What is the current value of this stock to you if you require a 12 percent rate of return?

• A)$12.63
• B)$12.95
• C)$13.05
• D)$13.37
• E)$13.72

---

Definitions:

Governmental Regulation

The laws, rules, and regulations established by government bodies to control activities within various sectors and protect public interests.

Capital Contributions

The money, property, or other assets that an owner or shareholder provides to a business either initially or to support ongoing operations.

Total Share

Refers to the total number of shares of stock that are owned by shareholders, including both public investors and private insiders or executives.

Net Income

The net income of a business following the subtraction of all costs and taxes from its gross earnings.