The Common Stock of Metal Molds Has a Negative Growth

question 68

Multiple Choice

The common stock of Metal Molds has a negative growth rate of 1.5 percent and a required return of 18 percent.The current stock price is $11.40.What was the amount of the last dividend paid?

• A)$2.07
• B)$2.11
• C)$2.19
• D)$2.22
• E)$2.26

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Definitions:

Variable Selling

Costs associated with selling a product that vary directly with the volume of sales.

Variable Administrative Expenses

Costs related to the administration of a business that vary with the level of activity or production.

Fixed Cost

Charges that are stable in spite of the levels of output or sales achieved, such as housing lease, salaries paid to employees, and insurance expenses.

Production Supplies

Items and materials used in the manufacturing process that are not directly incorporated into the final product.