Distant Thunder,Inc

question 15

Multiple Choice

Distant Thunder,Inc.paid a dividend of $5.00 per share on its common stock yesterday.Dividends are expected to grow at a constant rate of 10% for the next two years,at which point the dividends will begin to grow at a constant rate indefinitely.If the stock is selling for $50 today and the required return is 15%,what it the expected annual dividend growth rate after year two?

• A) 3.365%
• B) 3.878%
• C) 4.556%
• D) 5.000%

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Definitions:

Provides Feedback

Refers to the process of giving constructive information or criticism to individuals regarding their performance or behavior.

Capacity Plan

Identifying the necessary production capabilities of an enterprise to fulfill varying product demands.

Production Plan

An outline of what a company plans to produce, in what quantities, and when, to meet anticipated demand.

Erroneous Dimension

A mistaken or incorrect measurement or aspect within a dataset or analysis.