Rylan Industries Is Expected to Pay a Dividend of $5

question 43

Multiple Choice

Rylan Industries is expected to pay a dividend of $5.70 year for the next four years. If the current price of Rylan stock is $31.27, and Rylan's equity cost of capital is 12%, what price would you expect Rylan's stock to sell for at the end of the four years?

• A) $21.96
• B) $39.53
• C) $17.57
• D) $61.49

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Definitions:

Physiological Needs

The basic, essential human requirements for survival, such as food, water, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Abraham Maslow

Abraham Maslow was a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology proposing five tiers of human needs, from basic survival needs like food and shelter to higher levels of needs such as self-actualization.

Hierarchy

Hierarchy is a system of organizing people or things according to levels of importance or authority.

Basic Amenities

Essential facilities and services provided to make a living or working environment comfortable and functional, such as clean water, electricity, and sanitation.