If Expected Dividends Grow at 7% and the Appropriate Discount

question 62

Multiple Choice

If expected dividends grow at 7% and the appropriate discount rate is 9%, what is the value of a stock with an expected dividend one year from now of $1.00?

• A) $62.88
• B) $19.41
• C) $29.12
• D) $50.00

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Definitions:

Functionalism

An approach in psychology that focuses on the roles and functions of the mind and behavior in individuals' adaptation to their environment.

Purpose of Behaviour

The underlying reason or motive for why a specific action or behavior is performed by an individual.

Behaviourist

A psychological approach focusing on observable and measurable behaviors, discouraging speculation about internal mental processes.

Aggressive or Non-Aggressive

A classification that denotes whether actions, thoughts, or attitudes are intended to harm or are non-harmful in nature.