How Much Would You Pay for a Share of Stock

question 6

Multiple Choice

How much would you pay for a share of stock today,if you expect it will pay a dividend of $2.50 each year and will sell for $58 one year from now? Assume your required rate of return on this stock is 13 percent.

• A) $60.50
• B) $55.50
• C) $53.54
• D) $49.59

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Definitions:

Cerebral Palsy

A neurological disorder caused by a non-progressive brain injury or malformation that occurs while the child’s brain is under development, affecting body movement and muscle coordination.

Dermatome

Body segment corresponding to a segment of the spinal cord.

Spinal Segment

A section of the spinal cord defined by the pair of spinal nerves that emerge from it, responsible for specific sets of motor and sensory functions.

Body's Surface

The external part of the body exposed to the environment, including skin, which serves as a protective barrier and plays roles in sensation and temperature regulation.