A Stock You Are Interested in Paid a Dividend of $1

question 54

Multiple Choice

A stock you are interested in paid a dividend of $1 last month. The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 12%. Calculate the expected price of the stock.

• A) $15.38
• B) $20.50
• C) $21.05
• D) $22.27
• E) $26.14

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Definitions:

Corpora Quadrigemina

A structure located in the midbrain, consisting of four rounded prominences (two superior colliculi and two inferior colliculi) involved in vision and hearing.

Mammillary Bodies

A pair of small round bodies located in the brain involved in memory function and forming part of the limbic system.

Cerebral Peduncles

Structures located on the underside of the brain, connecting the cerebrum with the lower portions of the brain and spinal cord.

Sulcus

A term specifically referring to the indentations or narrow grooves on the surface of an organ or tissue, including the brain.