If a Stock's Dividend Is Expected to Grow at a Constant

question 170

Multiple Choice

If a stock's dividend is expected to grow at a constant rate of eight percent in the future and it has just paid a dividend of $1.25 a share, and you have an alternative investment of equal risk that will earn a 12 percent rate of return, what would you be willing to pay per share for this stock?

• A)$31.25
• B)$1.40
• C)$1.25
• D)$1.12

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A manner of communication that is natural, informal, and resembles everyday spoken language.

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A communication approach focusing on the audience's perspective and interests.

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A communication approach focusing on the audience's needs and perspectives, emphasizing "you" rather than "I" or "we."

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