Your Friend Has Recommended That You Purchase Stock in Company

question 88

Multiple Choice

Your friend has recommended that you purchase stock in company XYZ.It is expected to pay a $4 dividend,and has historically grown at 5%.If the required rate of return is 12%,what is the estimated value of a share of XYZ stock?

• A)$23.53
• B)$33.34
• C)$57.14
• D)$80.00

---

Definitions:

Essentialism

The belief that entities have a set of immutable characteristics that define their essence, often applied to social categories like gender or race.

Group Dynamics

The study of the behaviors, interactions, and psychological processes that occur within and influence the actions of a group.

Therapy

A treatment intended to relieve or heal a disorder, often involving psychological techniques.

Storming

Describes a stage in group development where members express conflicting opinions, challenge group goals, and resist control by group leaders, often leading to tension.