OwenInc Has a Current Stock Price of $14

question 46

Multiple Choice

OwenInc has a current stock price of $14.50 and is expected to pay a $0.85 dividend in one year.If OwenInc's equity cost of capital is 12%,what price would OwenInc's stock be expected to sell for immediately after it pays the dividend?

• A)$12.18
• B)$13.65
• C)$15.29
• D)$15.39

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Definitions:

Prevent Contamination

A series of measures designed to stop the introduction or spread of infectious agents in a certain area, ensuring the safety and cleanliness of the environment.

Specimen

A sample of something, such as body tissue, blood, or urine, used for analysis or diagnosis.

Photometer

An instrument used to measure the intensity of light or optical properties of solutions.

Light Intensity

The measure of brightness of a source of light, potentially affecting mood, health, and the ability to perform tasks.