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DDP Enterprises Currently Does Not Pay a Dividend but Plans

question 99

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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?


Definitions:

Goal-setting System

A structured approach to identifying and planning how to achieve personal or organizational objectives.

Operant Conditioning

An educational method where the intensity of an action is altered through either rewards or penalties.

Expectancy Theory

A theory suggesting that the motivation of an individual is affected by the belief in the effectiveness of their effort, the value of the rewards associated with success, and the likelihood that their effort will lead to desired outcomes.

Equity Theory

is a theory of motivation that suggests individuals assess their job satisfaction based on the fairness of the rewards they receive relative to others.

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