A Stock Is Expected to Pay $0

question 70

Multiple Choice

A stock is expected to pay $0.80 per share every year indefinitely.If the current price of the stock is $18.90,and the equity cost of capital for the company that released the shares is 6.4%,what price would an investor be expected to pay per share five years into the future?

• A)$12.50
• B)$20.43
• C)$21.23
• D)$22.65
• E)$22.90

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Definitions:

Associated Symptoms

Symptoms that often occur together with a primary symptom or condition, providing clues to the diagnosis.

Review of Symptoms (ROS)

A systematic examination of the body's functions to identify any signs of disease, typically conducted during a medical history taking.

Systematic Check

An organized and thorough examination or review to ensure that procedures or standards are adhered to.

HIPAA Privacy Standards

Regulations established to protect the privacy and security of individuals' health information, set forth by the Health Insurance Portability and Accountability Act.