Fading Away Corporation Just Paid a Dividend of $1

question 58

Multiple Choice

Fading Away Corporation just paid a dividend of $1.23 and has an expected growth rate of -5% for the foreseeable future,if the discount rate is 7% what is the appropriate stock price today?

• A) $ 58.86
• B) $ 47.72
• C) $ 50.35
• D) $ 47.84

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Definitions:

SUTA Tax Rate

The state-level tax rate applied to employers to fund state unemployment benefits, varying by state and employer's history with unemployment claims.