Nu-Tek,Inc

question 43

Multiple Choice

Nu-Tek,Inc.is expecting a period of intense growth,so it has decided to retain more of its earnings to help finance that growth.As a result,it is going to reduce its annual dividend by 20 percent a year for the next three years.After that it will maintain a constant dividend of $1.60 a share.Last year,the annual dividend was $2.60 a share.What is the market value of this stock if the required rate of return is 13 percent?

• A)$9.86
• B)$12.60
• C)$16.08
• D)$14.23
• E)$11.15

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Definitions:

Charismatic

Characterizes individuals who possess a compelling attractiveness or charm that can inspire devotion in others, often seen in leaders.

Referent Power

Refers to an individual's ability to influence others based on personal attributes or associations.

Interpersonal Forms

The various types and methods of communication and interaction between individuals, including verbal, non-verbal, and written forms.

Reward Power

The ability of an individual to influence others' actions, behavior, or thinking by offering positive reinforcements such as bonuses, promotions, or other benefits.