Use the Information for the Question(s)below

question 70

Multiple Choice

Use the information for the question(s) below.
Defenestration Industries plans to pay a $4.00 dividend this year and you expect that the firm's earnings are on track to grow at 5% per year for the foreseeable future.Defenestration's equity cost of capital is 13%.
-Suppose that Defenestration decides to pay a dividend of only $2 per share this year and use the remaining $2 per share to repurchase stock.If Defenestration's payout rate remains constant,then Defenestration's stock price is closest to:

• A)$50.00.
• B)$22.25.
• C)$32.30.
• D)$30.75.

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Definitions:

Basal Level

The basal level is the minimum level of competency or knowledge required to understand or perform a specific task.

Stanford-Binet

A standardized test that measures intelligence and cognitive abilities in adults and children.

Consecutive Age Levels

Consecutive age levels refer to sequential developmental stages individuals go through, each characterized by specific milestones in physical, cognitive, or social development.

WISC-IV

The Wechsler Intelligence Scale for Children, Fourth Edition, a tool designed to assess the intelligence of children ages 6-16.