Connolly Co

question 32

Multiple Choice

Connolly Co.'s expected year-end dividend is D1 = $1.60, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Connolly's expected stock price in 7 years, i.e., what is ?

• A) $37.52
• B) $39.40
• C) $41.37
• D) $43.44
• E) $45.61

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Definitions:

Moral Capabilities

The capacities or abilities of individuals to make ethical choices, understand moral principles, and act in ways that are consistent with moral values.

Moral Persons

Beings capable of making ethical decisions and recognizing moral claims upon their actions.

Consequentialist Thought

Ethical philosophy considering the consequences of actions as the primary basis for any judgment about the rightness or wrongness of those actions.

Utilitarian Thought

A philosophical belief that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.