A Stock Is Expected to Pay a $1

question 40

Multiple Choice

A stock is expected to pay a $1.00 dividend per share. The growth rate is expected to be 4 percent. If investors demand 10 percent on this stock, what is the expected price of the stock 10 years from now?

• A) $24.68
• B) $22.17
• C) $25.00
• D) $26.93

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Definitions:

Willing

Displaying readiness or being inclined towards undertaking a specific action or embracing a particular idea.

Ultimate Concern

The fundamental issue or overarching priority that drives an individual's actions or beliefs.

Ownership

The act, state, or right of possessing something, which can refer to tangible property or intangible qualities such as owning one's actions.

Being

The existence or essence of a person, often considered in terms of consciousness, identity, and the nature of existence.