Avril Synchronistics Will Pay a Dividend of $1

question 6

Multiple Choice

Avril Synchronistics will pay a dividend of $1.30 per share this year.It is expected that this dividend will grow by 5% each year in the future.What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 14%?

• A)$9.23
• B)$9.28
• C)$14.44
• D)$15.16
• E)$16.21

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Definitions:

Cash Over and Short

An accounting discrepancy representing a minor difference between the actual amount of cash on hand and the recorded amount.

Miscellaneous Expenses

Expenses that don't fit into any standard category of the business's budget, often small or irregular costs.

Invoice

A document issued by a seller to a buyer that itemizes a transaction and requests payment for goods or services provided.

Itemized Statement

A detailed document listing individual charges, items, or services along with their costs.