Northern Railways Has a Current Stock Price of $56

question 27

Multiple Choice

Northern Railways has a current stock price of $56.75 and is expected to pay a dividend of $1.15 in one year.If Northern's equity cost of capital is 12%,what price would Northern's stock be expected to sell for immediately after it pays the dividend?

• A)$57.65
• B)$63.56
• C)$62.41
• D)$57.78
• E)$55.60

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Definitions:

Poor Skin Color

Poor skin color is a medical symptom indicating potential issues such as inadequate blood flow, oxygenation problems, or systemic health conditions.

Foul Body Odor

Unpleasant smell emanating from the body, often due to bacteria on the skin breaking down sweat into acidic compounds.

Atherosclerosis

A condition characterized by the hardening and narrowing of the arteries due to the buildup of plaque, which can lead to reduced blood flow and increased risk of cardiovascular diseases.

Fatty Deposits

Accumulation of fat within the body, often in specific areas such as arteries or liver.