A Share of Common Stock Has Just Paid a Dividend

question 100

Multiple Choice

A share of common stock has just paid a dividend of $2.If the expected long-run growth rate for this stock is 15%,and if investors require a 19% rate of return,what is the price of the stock?

• A) $57.50
• B) $62.25
• C) $71.86
• D) $64.00
• E) $44.92

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Definitions:

Keywords

Reserved words in a programming language that have a special meaning and cannot be used as identifiers (variable names, function names, etc.).

Identifiers

Names used in programming languages to identify variables, functions, classes, modules, and other user-defined elements.

Driver Function

A function specifically designed to initiate and control the flow of execution in a program, often setting up initial states and invoking other functions.

Function Header Line

A line at the beginning of a function definition that includes the function name, return type, and parameters.