Martin's Yachts Has Paid Annual Dividends of $1

question 32

Multiple Choice

Martin's Yachts has paid annual dividends of $1.40,$1.75,and $2.00 a share over the past three years,respectively. The company now predicts that it will maintain a constant dividend since its business has leveled off and sales are expected to remain relatively constant. Given the lack of future growth,you will only buy this stock if you can earn at least a 15% rate of return. What is the maximum amount you are willing to pay to buy one share today?

• A) $10.00
• B) $13.33
• C) $16.67
• D) $18.88
• E) $20.00

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Definitions:

Solicited Letter

A job letter written when you know that the company is hiring.

Prospecting Letter

A job application letter written to a company that has not announced openings but where you’d like to work.

Hidden Job Market

Jobs that are never advertised but that may be available or may be created for the right candidate.

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