A Company Has Stock Which Costs $42

question 38

Multiple Choice

A company has stock which costs $42.00 per share and pays a dividend of $2.50 per share this year.The company's cost of equity is 8%.What is the expected annual growth rate of the company's dividends?

• A)2%
• B)4%
• C)8%
• D)11%
• E)5%

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Definitions:

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work.

Social Inhibitions

The conscious or subconscious avoidance of a behavior or expression that is perceived to be socially unacceptable or inappropriate.

Active Ingredient

The component in a substance or product that is responsible for its therapeutic effects.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its soothing effects.