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:

Crowd Sourcing

The practice of obtaining information, ideas, or content by soliciting contributions from a large group of people, typically from the online community, rather than from traditional employees or suppliers.

Brand Equity

The value and strength of a brand that determines its worth, based on the consumer’s perception, recognition, and loyalty.