A Stock Is Expected to Pay $0

question 7

Multiple Choice

A stock is expected to pay $0.70 per share every year indefinitely. If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 7.9%, what price would an investor be expected to pay per share five years into the future?

• A) $8.86
• B) $14.18
• C) $14.62
• D) $15.06

Understand the adverse effects of economic globalization such as the collapse of local markets.

Understand the fundamental principles of marketing and its utilities.

Recognize the importance of combining different strategies for marketing success.

Comprehend the process of marketing from discovering customer needs to targeting markets.

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Definitions:

Value Chain

A series of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

Service Chain

The sequence of processes involved in the production and delivery of a service.

Activities System

The integrated set of actions or tasks performed by an organization or a part of it to achieve its objectives.

Value Chain

A model that outlines a series of activities that businesses perform in order to deliver a valuable product or service for the market.