Use the Following Information to Answer the Question(s) Below

question 66

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a share price of $50.00. Its dividend was $2.50, and you expect Nielson Motors to raise its dividend by approximately 6% per year in perpetuity.
-If Nielson's equity cost of capital is 13%,then Nielson's expected share price is closest to:

• A) $19.23
• B) $35.71
• C) $41.67
• D) $50.00

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Definitions:

Nematode

Unsegmented worms of the phylum Nematoda, including both parasitic and free-living species that can be found in various environments.

Ectoderm

The outer germ layer of the early embryo; gives rise to the skin and nervous system. Compare with mesoderm and endoderm.

Protostomes

Animals that belong to the Protostomia, one of the major animal clades. Include the annelids, arthropods, and mollusks. Compare with deuterostomes.

Deuterostomes

A major group of animals characterized by their embryonic development, in which the anus forms before the mouth.