A Stock Just Paid a $2

question 30

Multiple Choice

A stock just paid a $2.00 dividend that is anticipated to grow at 6% indefinitely. Similar stocks are returning about 13%. The estimated selling price of this stock is:

• A)$30.29.
• B)$15.38.
• C)$16.31.
• D)$28.57.

---

Definitions:

Pressure

The sensation of physical force being applied to an object or a feeling of stress and urgency induced by the demands and expectations of others.

Somatic Pain

Pain that originates from the skin, muscles, bones, or connective tissues, usually localized and easier to pinpoint than visceral pain.

Deep Ache

A profound or intense pain that is often felt at deeper bodily structures or tissues.

Life Expectancy

The statistical measure of the average time an organism is expected to live, based on factors like genetics, lifestyle, and environment at the time of birth.