USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 46

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider a firm that has just paid a dividend of $2. An analyst expects dividends to grow at a rate of 8 percent per year for the next five years. After that dividends are expected to grow at a normal rate of 5 percent per year. Assume that the appropriate discount rate is 7 percent.
-Refer to Exhibit 8.3. The present value today of dividends for years 1 to 5 is

• A) $4.06.
• B) $10.28.
• C) $12.40.
• D) $14.52.
• E) $10.0.

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Definitions:

Mental Models

Represent the deeply ingrained assumptions or generalizations that influence how individuals understand the world and take action.

Organizational Culture

The set of shared beliefs, values, norms, and practices that shape the social and psychological environment of an organization.

Subconsciously Guide

To influence or direct behaviors, thoughts, or actions below the level of conscious awareness, often rooted in deeper internal processes or learned patterns.

Organizational Culture

The communal norms, values, and beliefs that affect employees' attitudes, emotions, and behavior inside an organization.