Dynamic Industries Paid a Dividend of $1

question 51

Multiple Choice

Dynamic Industries paid a dividend of $1.65 on its common stock yesterday.The dividends of Wallace Industries are expected to grow at 9% per year indefinitely.If the risk-free rate is 3% and investors' risk premium on this stock is 8%,estimate the value of Wallace Industries stock 2 years from now.

• A) $106.84
• B) $100.43
• C) $91.81
• D) $54.71

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Definitions:

Diversity

The inclusion and representation of different racial, ethnic, gender, sexual orientation, socio-economic, and cultural backgrounds in a group or organization.