What Is the Expected Price for the Stock of a Company

question 16

Multiple Choice

What is the expected price for the stock of a company that just paid a dividend of $3.00? The company has a dividend payout ratio of 50 percent,discount rate of 25 percent,and a P/E of 10.

• A) $60.00
• B) $30.00
• C) $12.00
• D) $45.00
• E) $22.50

---

Definitions:

Refractory Period

A period immediately following the stimulation during which a nerve or muscle is unresponsive to further stimulation.

Excitement Phase

The initial stage in the human sexual response cycle characterized by physical and emotional sensations of arousal, such as increased heart rate and muscle tension.

Orgasm Phase

A phase in sexual response characterized by intense pleasure, increased heart rate, and typically, in men, ejaculation, and in women, vaginal contractions.

Shortest Phase

Generally refers to the briefest stage or period within a process or cycle, though specifics can vary depending on the context it is used in.