Shares of the Samson Co

question 64

Multiple Choice

Shares of the Samson Co.offer an expected total return of 12 percent.The dividend is increasing at a constant 3.25 percent per year.What is the value of the next dividend if the stock is selling at $28 a share?

• A)$2.50
• B)$2.45
• C)$2.78
• D)$2.34
• E)$2.10

---

Definitions:

Mortgage

A loan specifically designed for the purchase of real estate, in which the property itself serves as collateral.

Co-signs

Acts of signing a loan or document jointly with another person, thereby agreeing to share the responsibility for the associated obligations.

Credit Application

A form or process by which an individual or company seeks to obtain credit from a lending institution or creditor.

Interest Rate

the percentage charged on a loan or paid on deposits over a specific period of time, reflecting the cost of borrowing or the reward for saving.