Zuma Corporation Just Paid a Dividend of $5

question 34

Multiple Choice

Zuma 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) $43.58
• B) $45.59
• C) $45.76
• D) $48.86

---

Definitions:

Square Feet

A unit of area measurement equal to a square measuring one foot on each side.

Maintenance Cost

Maintenance Cost involves expenses incurred to keep assets, equipment, or property in optimal condition and operating efficiently, including repairs and preventive care.

Administrative Costs

Overhead expenses associated with the day-to-day running of a business, involving clerical activities, and support services not linked directly to production.

Service Department Expenses

Costs incurred by the departments that support the primary activities of a business but do not directly engage in production.