Micro Corp

question 61

Multiple Choice

Micro Corp. just paid dividends of $2 per share. Assume that over the next three years dividends will grow as follows, 5 percent next year, 15 percent in year two, and 25 percent in year 3. After that growth is expected to level off to a constant growth rate of 10 percent per year. The required rate of return is 15 percent. Calculate the intrinsic value using the multistage model.

• A) $5.56
• B) $66.4
• C) $49.31
• D) $43.66
• E) $35.21

---

Definitions:

Mask

A facade or front that an individual presents to the world, often concealing their true thoughts or feelings.

Social Networking Sites

Online platforms where individuals can create profiles, interact with friends and strangers, share information, and participate in various forms of social activities.

Self-image

An individual's perception of their attributes, abilities, and overall value, which forms a critical aspect of their identity.

Facebook

A social networking site that allows users to create personal profiles, share media, and communicate with friends and family.