Nu-Tech Is Expecting a Period of Intense Growth and Has

question 54

Multiple Choice

Nu-Tech is expecting a period of intense growth and has decided to reduce its annual dividend by 10 percent a year for the next two years.After that,it will maintain a constant dividend of $.70 a share.The company just paid $1.80 per share.What is the value of this stock if the required rate of return is 13 percent?

• A)$6.99
• B)$6.79
• C)$8.22
• D)$8.87
• E)$7.62

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Definitions:

Auditory Information

Information that is perceived through hearing.

Eyewitness Memory

The recollection by individuals of events they have witnessed, which can be affected by various factors and may not always be reliable.

Recovered Memories

Relates to once forgotten and then later retrieved memories, often tied to traumatic events.

Overzealous Therapists

Therapists who may show excessive enthusiasm or fervor in their approach, potentially leading to ethical concerns or boundary issues in therapy.