Predictable Corp Has Increased Its Annual Dividend Each Year of Its

question 100

Multiple Choice

Predictable Corp has increased its annual dividend each year of its life by 2% (and will continue to do so indefinitely) .If Predictable paid its annual dividend yesterday of $8 and the cost of capital is currently 4%,then by what amount will the stock price decrease by if the cost of capital increases to 5%?

• A) $408.00
• B) $272.00
• C) $136.00
• D) none of the above

---

Definitions:

Increasing Competition

Increasing competition refers to a situation where the number or capability of rivals in an, area such as business or sports, is growing.

Undermine Prejudicial Attitudes

The process of weakening biased or unfounded judgments against individuals or groups by challenging stereotypes and promoting understanding.

Healthy Competition

A type of competition that encourages participants to put forth their best effort while maintaining respect and fairness towards others.

Social Norms

Unwritten rules that govern the behavior of individuals within a society or group.