Rylan Industries Is Expected to Pay a Dividend of $5

question 36

Multiple Choice

Rylan Industries is expected to pay a dividend of $5.20 per year for the next four years.If the current price of Rylan stock is $32.63,and Rylan's equity cost of capital is 14%,what price would you expect Rylan's stock to sell for at the end of the four years?

• A)$29.52
• B)$55.11
• C)$25.58
• D)$80.70
• E)$11.83

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Definitions:

Point A

A specific location or position in any defined space or context, often used in diagrams to represent particular points in economic models or graphs.

Point B

Often used in graphs or models to denote a specific location, point, or situation being analyzed or referenced.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Point A

Typically used as a reference point in diagrams or illustrations in economics or geometry.