JK IncIs a Very Cyclical Type of Business Which Is Reflected

question 72

Multiple Choice

JK Inc.is a very cyclical type of business which is reflected in its dividend policy.The firm pays a dividend of $2.00 a share every other year with the last payment having just been paid.Five years from now,the company is repurchasing all of the outstanding shares at a price of $50 a share.What is the current value of one share at a discount rate of 12 percent?

• A)$34.03
• B)$31.24
• C)$33.78
• D)$27.89
• E)$34.99

---

Definitions:

Double-Barreled

Pertains to questions or statements that address more than one issue, yet allow only for a single response, leading to confusion and unreliable data.

Negatively Worded

Referring to survey or assessment items that are phrased in a way that implies a negative construct.

Closed-Ended Questions

Questions formulated in a way that limits respondents to a set of predefined answers.

Focus Group

A research method that gathers a small, diverse group of people to discuss and give feedback on a specific product or topic.