Valorous Corporation Will Pay a Dividend of $1

question 22

Multiple Choice

Valorous Corporation will pay a dividend of $1.80 per share at this year's end and a dividend of $2.40 per share at the end of next year.It is expected that the price of Valorous' stock will be $44 per share after two years.If Valorous has an equity cost of capital of 8%,what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?

• A)$39.27
• B)$40.22
• C)$41.45
• D)$42.40

---

Definitions:

Study

An organized examination and analysis of materials and sources with the aim of discovering facts and deriving new insights.

Methodology Section

Part of a research paper or thesis that describes the methods used to collect data, conduct research, and analyze results.

Analysis Techniques

Methods or procedures used to examine and interpret data or information to deduce conclusions or insights.

Olympics News Coverage

Media reporting and analysis focused on events, athletes, and stories related to the Olympic Games.