Rylan Industries Is Expected to Pay a Dividend of $5

question 61

Multiple Choice

Rylan Industries is expected to pay a dividend of $5.20 year for the next four years.If the current price of Rylan stock is $32.63,and Rylan's equity cost of capital is 14%,what price would you expect Rylan's stock to sell for at the end of the four years?

• A)$29.52
• B)$55.11
• C)$25.58
• D)$80.70

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Definitions:

Total Commission

The cumulative amount of money paid as a commission, representing earnings from sales or transactions.

Commission Payment Plans

Arrangements specifying how commissions are calculated, scheduled, and paid to salespersons or agents based on their sales achievements.

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Contracts between an insurer and an insured that provides financial protection or reimbursement against losses.

Total Gross Pay

The complete amount of income earned by an employee before any deductions or taxes are applied.