ConsGrough,Inc

question 103

Multiple Choice

ConsGrough,Inc.has increased its annual common dividend by 3% in each of the years that the company has existed.If you believe that the company can continue to do so indefinitely,then what price would you be will to pay for ConsGrough if the required rate of return is 6% and the dividend that it paid yesterday was $5?

• A) $85.83
• B) $166.67
• C) $171.67
• D) $200.00

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale in the market.

Common Resources

Natural or man-made resources that are not owned by anyone, cannot exclude others from using, and are susceptible to overuse and depletion.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing availability to others.

Not Excludable

A characteristic of a good or service where it is difficult or impossible to prevent individuals from enjoying its benefits, even if they do not pay for it.