You Are Trying to Determine the Fair Price to Pay

question 48

Multiple Choice

You are trying to determine the fair price to pay for a share of Philip Morris. If you buy this stock, you plan to hold it for a year. At the end of the year, you expect to receive a dividend of $5.50 and to sell the stock for $154. The discount rate for Philip Morris stock is 16%. What should be the price of this stock?

• A) $99.80
• B) $137.50
• C) $144.22
• D) $151.66

---

Definitions:

Eukaryotic

Eukaryotic refers to organisms whose cells contain a nucleus enclosed within membranes, distinguishing them from prokaryotic organisms, which lack a membrane-bound nucleus.

Frame Shift Mutation

A genetic mutation caused by insertions or deletions of a number of nucleotides in a DNA sequence that is not divisible by three.

Transcription

The process of synthesizing RNA from a DNA template, a key step in gene expression.

DNA Synthesis

The process of constructing DNA molecules naturally or artificially through the enzyme-driven arrangement of nucleotides in a specific order.