Maple Drinks Corp

question 34

Multiple Choice

Maple Drinks Corp.has just announced a dividend of $0.80 for this year and $0.835 for the next year.Dividends are expected to grow at a constant rate indefinitely.What is the current stock price if the required return is 13.1 percent?

• A) $8.55
• B) $9.35
• C) $9.57
• D) $10.37

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Definitions:

Tension

The state of being stretched tight, which can refer to physical objects or a psychological state of stress or anxiety.

Nonmotivating

Activities or stimuli that do not provoke interest, excitement, or drive in an individual.

Motives

The reasons or drives behind an individual's actions or behavior.

Deficiencies

Refers to the lack or shortage of something essential, including nutrients, resources, or qualities necessary for normal functioning and health.