A Stock Is Expected to Pay $3

question 53

Multiple Choice

A stock is expected to pay $3.20 per share every year indefinitely and the equity cost of capital for the company is 10%.What price would an investor be expected to pay per share next year?

• A)$8.00
• B)$16.00
• C)$24.00
• D)$32.00

---

Definitions:

Appropriate Behaviour

Conduct that is considered suitable or fitting within a specific context, often aligned with social norms, ethics, or organizational policies.

Leader

An individual who influences and guides others towards achieving a goal, through direction, motivation, and fostering a sense of purpose.

Strategic Leadership

The ability of an organization's leaders to envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.

Continuous Change

A constant, ongoing process of adapting and improving organizations, processes, or products in response to external or internal factors.