Zeb Corporation Just Paid a Dividend of 3

question 35

Multiple Choice

Zeb Corporation just paid a dividend of 3.11 and has an expected growth rate of 12% for the foreseeable future,if the discount rate is 18% what is the appropriate stock price today?

• A) $58.05
• B) $51.83
• C) $57.87
• D) $55.06

---

Definitions:

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Independent Variable

The variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment or study that is expected to change as a result of manipulations of the independent variable.

Coefficient of Determination

A measure used in statistical models that defines the proportion of the variance in the dependent variable that is predictable from the independent variable(s).