USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 35

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider a firm that has just paid a dividend of $1.5. An analyst expects dividends to grow at a rate of 9 percent per year for the next three 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 8.4. The present value today of dividends for years 1 to 3 is

• A) $4.67.
• B) $3.08.
• C) $5.67.
• D) $4.5.
• E) $1.53.

Appreciate the importance of the Sarbanes-Oxley Act of 2002 in enhancing corporate responsibility and protecting investors.

Understand how securities laws apply to various actors in the securities market, including corporate "outsiders".

Understand key provisions and requirements under the Securities Exchange Act of 1934 and Sarbanes-Oxley Act of 2002.

Identify corporate governance practices and their significance.