Bensen CoPaid a Dividend of $5

question 11

Multiple Choice

Bensen Co.paid a dividend of $5.25 on its common stock yesterday.The company's dividends are expected to grow at a constant rate of 8.5% indefinitely.If the required rate of return on this stock is 15.5%,compute the current value per share of Bensen Co.stock.

• A) $81.38
• B) $76.43
• C) $56.23
• D) $43.90

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Definitions:

Felony

A serious crime, typically one punishable by imprisonment for more than one year or by death.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to causing harm or damage.

Battery

An intentional unconsented physical contact or use of force against another person, causing harm or offense.

Self-Defense

The right to defend oneself or others against physical harm or death through the use of reasonable force.