Exhibit 20-7 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 73

Multiple Choice

Exhibit 20-7
USE THE FOLLOWING INFORMATION FOR THE NEXT 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% per year for the next three years. After that dividends are expected to grow at a normal rate of 5% per year. Assume that the appropriate discount rate is 7%.
-Refer to Exhibit 20-7. What is the present value today of dividends for years 1 to 3?

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

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Definitions:

DHCP

Dynamic Host Configuration Protocol is a network management protocol used to automate the process of configuring devices on IP networks.

Access Point

A component of a wireless network that accepts associations from wireless network cards.

Enterprise Firewall

A security system designed for protecting the networks of large organizations by monitoring and controlling incoming and outgoing network traffic based on predetermined security rules.

IP Address

Internet Protocol Address, a numeric label assigned to each device connected to a computer network that uses the Internet Protocol for communication.