Kleine Toymakers Is Introducing a New Line of Robotic Toys

question 83

Multiple Choice

Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a much faster rate than normal over the next three years. After paying a dividend of $2.00 last year, it does not expect to pay a dividend for the next three years. After that Kleine plans to pay a dividend of $4.00 in year 4 and then increase the dividend at a rate of 10 percent in years 5 and 6. What is the present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent? (Do not round intermediate calculations. Round final answer to two decimal places.)

• A) $13.24
• B) $12.00
• C) $6.57
• D) $10.24

---

Definitions:

Organizational Communication

The process of creating, exchanging, and interpreting messages within a network of interdependent entities.

Approaches

Refers to the different methods or strategies adopted in tackling problems, tasks, or studies in various fields.

Communication Process

The transfer and understanding of meaning between individuals or groups, involving a sender, message, medium, receiver, and feedback.

Define Communication

Involves the process of sharing information, feelings, and thoughts through spoken or written language, gestures, or other symbols between entities.