Fanshaw Corporation Is Expected to Pay an Annual Dividend of $0.20

question 82

Multiple Choice

Fanshaw Corporation is expected to pay an annual dividend of $0.20 per share in the coming year,and to trade for $15.15 at the end of the year.If investments with the same risk as Fanshaw's stock have an expected return of 10.75%,what is the most you would pay today for Fanshaw's stock?

• A)$15.15
• B)$15.35
• C)$13.50
• D)$14.95
• E)$13.86

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Definitions:

Uvula

Small, grape-like appendage at the posterior margin of the soft palate.

Deglutition

Act of swallowing.

Salivary Amylase

Salivary amylase is an enzyme secreted by the salivary glands that begins the digestive process by breaking down starch into simpler sugars.

Starch Digestion

The process by which dietary starch is broken down into simpler sugars, like glucose, by the action of enzymes.