A Company Is Expected to Pay a Dividend of $3

question 10

Multiple Choice

A company is expected to pay a dividend of $3.20 per share every year indefinitely and the equity cost of capital for the company is 10%. What price would an investor be expected to pay per share next year?

• A)$16.00
• B)$8.00
• C)$32.00
• D)$24.00

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Definitions:

Line Managers

Individuals directly responsible for overseeing the performance and tasks of other employees, often acting as the link between upper management and staff.

Advice And Counsel

The process of offering guidance, recommendations, or professional opinion to aid decision-making.

Financial Gain

The increase in money or assets, resulting from investment or business activities.

Employee Success

Refers to the achievement of career objectives, job satisfaction, and professional growth experienced by employees within an organization.