Praetorian Industries Will Pay a Dividend of $2

question 32

Multiple Choice

Praetorian Industries will pay a dividend of $2.50 per share this year and has an an equity cost of capital of 8%.Praetorian's stock is currently trading at $84 per share.By comparing Praetorian with similar firms,an investor expects that its dividends will grow by up to 5% per year.What is the best next step that the investor should take regarding Praetorian's stock?

• A)Sell any Praetorian stock that she owns.
• B)Short Praetorian's stock.
• C)Revise Praetorian's equity cost of capital.
• D)Revise her estimate of Praetorian's dividend growth.

---

Definitions:

Assess Skill Levels

The evaluation of the competence or expertise of an individual in a particular area or task.

Delegating Skills

Delegating skills involve the ability to effectively assign tasks or responsibilities to others while maintaining accountability.

Assistive Personnel

Workers who provide basic care services under the supervision of licensed healthcare professionals.

Relationship-Building Values

Principles or standards of behavior that promote strong, healthy connections and interactions with others.