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:

Negative Affectivity

A personality characteristic that involves the experience of negative emotions and poor self-concept.

Schizotypal Personality Disorder

Chronic pattern of inhibited or inappropriate emotion and social behavior as well as aberrant cognitions and disorganized speech.

Psychoticism

A personality trait marked by aggressiveness, impulsivity, and a lack of empathy, often associated with risk for psychotic disorders.

Schizotypal Personality Disorder

An emotional disorder characterized by profound social phobia, cognitive disarray, feelings of persecution, dissociation from reality, episodic psychosis, and typically unorthodox beliefs.