A Share of Common Stock Just Paid a Dividend of $3.25

question 24

Multiple Choice

A share of common stock just paid a dividend of $3.25 per share.The expected long-run growth rate for this stock is 18%.If investors require a rate of return of 24%,what should the price of the stock be?

• A)$57.51
• B)$62.25
• C)$71.86
• D)$63.92
• E)$44.94

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Definitions:

Continuous Change

Gradual development in which achievements at one level build on those of previous levels.

Sensitive Periods

Times during early childhood development when the brain is particularly receptive to learning specific skills or knowledge.

Sociocultural-Graded Influences

Factors that affect individuals differently based on their social and cultural background.

Age-Graded Influences

External factors that affect individuals in a similar way at similar ages, often related to societal expectations and norms.