USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 7

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The National Motor Company's last dividend was $1.25, and the directors expect to maintain the historic 4 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 7 percent for the next three years and the stock will then reach $25.00 per share.
-Refer to Exhibit 8.2. How much should you be willing to pay for the stock if you require a 16 percent return?

• A) $17.34
• B) $18.90
• C) $19.09
• D) $19.21
• E) $20.35

---

Definitions:

Apgar Score

A quick test performed on a newborn at 1 and 5 minutes after birth, assessing five criteria to evaluate the baby's physical condition and determine any need for further medical intervention.

Emergency Care

Medical services provided for illness or injury requiring immediate attention to prevent a serious threat to health, life, function, or wellbeing.

Phenotype

The collection of traits visible in a person that emerge from how their genetic code interacts with their surroundings.

Genes

Sequences of DNA or RNA that code for proteins and determine the inherited traits and characteristics of an organism.