Miller Juice,Inc

question 85

Multiple Choice

Miller Juice,Inc.is not paying a dividend right now,but is expected to pay a $4.56 dividend two years from now.Investors expect that dividend to grow by 4% every year forever.If the required return on the stock investment is 14%,what should be the price of Miller Juice stock today?

• A) $53.69
• B) $36.49
• C) $47.42
• D) $43.84

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Definitions:

Condition

A stipulation or requirement in a contract that must be met for the contract to be fully enforceable.

Anticipatory Repudiation

A contractual condition where one party indicates they will not fulfill their contractual duties before the time of performance is due.

Unforeseeable Circumstances

Events that could not have been predicted and therefore are out of the control of the contracting parties, often impacting contracts.

Doctrine

A belief, principle, or policy held by a person or organization, especially one taught by a church or political party.