A Stock Currently Sells for $63 Per Share, and the Required

question 70

Multiple Choice

A stock currently sells for $63 per share, and the required return on the stock is 10%. Assuming a growth rate of 5%, calculate the stock's last dividend paid.

• A) $1
• B) $3
• C) $5
• D) $7

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Definitions:

Mid-Ocean Ridge

A global chain of mountains beneath the sea, created by the movement of Earth's plates.

Andes

A major mountain range in South America, stretching along the western edge of the continent.

Felsic Pyroclastic

Materials produced by explosive volcanic eruptions that are rich in silica and comprise various types of volcanic ash, pumice, and other particles.

Volcanic Layer

A stratum or deposit on the Earth's surface resulting from volcanic activity, consisting of lava, ash, and other volcanic materials.