If a Company Pays a Dividend of $5 to Be

question 65

Multiple Choice

If a company pays a dividend of $5 to be received one year from now,dividends are expected to grow at a rate of 8 percent per year for the indefinite future,and the interest rate is 14 percent,the price of the company's stock should be ________ per share.

• A)$8.00
• B)$83.33
• C)$227.27
• D)$610.00

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Definitions:

Bandwidth

in computing, refers to the maximum rate of data transfer across a given path or connection in a network.

Repeater

A device used to extend the reach of a wireless or wired network by receiving and retransmitting signals.

Router

A networking device that forwards data packets between computer networks, performing traffic directing functions on the internet.

Switch

A networking device that connects devices together on a computer network, using packet switching to receive, process, and forward data to the destination device.