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

question 85

Multiple Choice

A stock you are interested in paid a dividend of $1 per share last year.The anticipated growth rate in dividends and earnings is 25 percent for the next two years before settling down to a constant 5 percent growth rate.The discount rate is 12 percent.What is the current value of the stock?

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

Understand the positive impact of local economic development on local businesses.

Identify and explain basic economic principles and concepts such as efficiency, opportunity cost, and government intervention.

Recognize the benefits and necessity of trade in an economy.

Describe how individual choices and market demands interact and influence economic outcomes.

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Definitions:

Political Office

denotes a position of authority or service in the government or related organization, held by an individual.

Balance Theory

A theory in social psychology suggesting that people strive for balance in their relationships and beliefs for cognitive consistency.

Pitchman

A person who promotes and sells a product or service, often using persuasive or catchy pitches, traditionally in a live setting but also often through media.

Balance Theory

A psychological theory suggesting that individuals strive for harmony in their relationships and opinions, leading to changes in attitudes when imbalances occur.