Monte Corporation Just Paid a Dividend of $4

question 75

Multiple Choice

Monte Corporation just paid a dividend of $4.25 and has an expected growth rate of 15% for the foreseeable future,if the discount rate is 18% what is the appropriate stock price today?

• A) $141.67
• B) $162.92
• C) $162.74
• D) $146.07

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Definitions:

Commodity Prices

The market prices for raw materials or primary agricultural products.

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

Arbitrage Opportunity

A situation in which it is possible to simultaneously buy and sell an asset or commodities in different markets to profit from price differences.

Long Position

The act of owning or buying an asset with the expectation that its value will increase over time.