Ajax Corporation Just Paid a Dividend of $5

question 52

Multiple Choice

Ajax Corporation just paid a dividend of $5.23 and has an expected growth rate of 5% for the foreseeable future,if the discount rate is 17% what is the appropriate stock price today?

• A) $49.20
• B) $51.34
• C) $50.48
• D) Cannot be determined with the available information

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Definitions:

Max Ringelmann

A French agricultural engineer who discovered that individuals exert less effort on a task when they work in a group compared to when working alone, known as the Ringelmann effect.

Individual Effort

The amount of work, energy, or initiative an individual puts into achieving a task or goals without relying on help from others.

Group Size

The number of individuals within a group or social gathering, which can influence dynamics, interactions, and outcomes within the group.

Norman Triplett

A psychologist known for his work on social facilitation and the co-action effect, which found that individuals perform tasks better or faster in the presence of others.