Extruded Elements Extruded Elements Had Net Income of $25,000,000 Last Year, and Year

question 101

Multiple Choice

Extruded Elements
Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate) . There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends
-The required rate of return on Extruded's shares is 13%.What is the share price today based on the Gordon growth model?

• A) $16.00
• B) $23.44
• C) $24.63
• D) $25.88

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Definitions:

Heart Rate

Heart rate is the number of heartbeats per unit of time, typically expressed in beats per minute (bpm), indicating the speed of heart function and cardiovascular health.

Vasoconstriction

The narrowing of blood vessels, which decreases blood flow and is regulated by various mechanisms in the body for maintaining blood pressure and temperature.

Sympathetic Fibers

Nerve fibers of the sympathetic nervous system that prepare the body for physical activity by increasing heart rate, blood flow, and energy mobilization.

Parasympathetic Fibers

Nerve fibers of the parasympathetic nervous system, responsible for conserving energy and slowing down the heart rate among other functions.