An Issue of Common Stock Has Just Paid a Dividend

question 68

Multiple Choice

An issue of common stock has just paid a dividend of $2.00. Its growth rate is equal to 4%. If the required rate of return is 7%, what is its current price?

• A) $19.04
• B) $80.00
• C) $69.33
• D) None of these

---

Definitions:

IQ Scores

Numerical scores derived from standardized assessments designed to measure human intelligence relative to a statistical norm.

Educational Program

Organized and systematic series of instructional or learning activities designed to achieve specific educational goals or competencies.

Flynn Effect

Describes the observed rise in measured intelligence quotient (IQ) scores over time, suggesting a generational increase in abstract reasoning and problem-solving abilities.

Improved Nutrition

Enhancements in dietary intake that lead to better health outcomes and well-being.