Suppose the Current Dividend for a Stock Is $0

question 36

Multiple Choice

Suppose the current dividend for a stock is $0.42 and is expected to grow 20% annually for the next three years and then 6% annually for the foreseeable future. What will the dividend be four years from today?

• A)$0.42
• B)$0.77
• C)$0.73
• D)cannot determine without a discount rate

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Definitions:

Stimulus Drive

A concept in psychology that discusses how external stimuli can motivate behavior by activating drives or needs.

Stimulus Motive

A drive that is based on needs for exploration, manipulation, curiosity, and stimulation of the senses.

Primary Drive

Fundamental biological needs or urges, such as hunger, thirst, and sex, that motivate behavior.

Unlearned

Refers to behaviors or responses that are natural or inherent, not acquired or taught.