Static Utility Company Anticipates Its Revenues,and Consequently Its Common Stock

question 107

Multiple Choice

Static Utility Company anticipates its revenues,and consequently its common stock dividends,will remain flat forever.It currently pays an annual dividend of $20 per year.If it pays the next dividend exactly one year from today,then what is the price of Static's common shares if the required rate of return is 12%?

• A) $24.00
• B) $40.00
• C) $166.67
• D) $200.00

---

Definitions:

Color Code

A system for displaying information by using different colors for easy identification and categorization.

Lead Arrangement

In the context of electrocardiography, lead arrangement refers to the configuration and placement of electrodes on the body to measure the heart's electrical activity.

Electrodes

Conductor materials used to make electrical contact with a nonmetal part of a circuit, often used in medical devices and experiments.

ECG

Electrocardiography, a medical test that measures the electrical activity of the heart to assess its health and function.