DDP Enterprises Currently Does Not Pay a Dividend but Plans

question 99

Multiple Choice

DDP Enterprises currently does not pay a dividend but plans to makes its first dividend payment of $1 in 3 years,if the expected growth rate is 10% per year once dividends commence,and the appropriate is discount rate is 18%,what is the current stock price today?

• A) $ 8.98
• B) $ 8.37
• C) $ 13.75
• D) $ 14.75

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Definitions:

Electronic Communication

The transmission of information using electronic systems and devices such as email, social media, and instant messaging.

Face-To-Face

Interaction with another person or persons in direct, physical presence, as opposed to through digital or remote communication methods.

Mediation

A conflict resolution process where a neutral third party helps disputants come to a consensual agreement.

Process Control

The use of technology and systems to monitor and adjust the operation of industrial processes to maintain desired performance.