Non-Constant Growth: BioSciTech Ltd a Biotech Company Has Forecast the Following

question 1

Multiple Choice

Non-constant growth: BioSciTech Ltd a biotech company has forecast the following growth rates for the next three years: 30 percent, 25 percent, and 20 percent. The company then expects to grow at a constant rate of 7 percent for the next several years. The company paid a dividend of $2.00 last week. If the required rate of return is 16 percent, what is the market value of this share?

• A) $51.03
• B) $36.87
• C) $56.12
• D) $46.37

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Definitions:

Moral Manager

A manager who makes ethical behaviour a personal goal.

Ethical Implications

The moral consequences or considerations related to an action, decision, or policy in personal or professional contexts.

Amoral Manager

An individual in a managerial position who makes decisions without considering the ethics or moral implications of their actions.

Unethically

In a manner that violates moral principles or established standards of conduct.