Jacob Suppliers Has Not Paid Out Any Dividend in the Last

question 23

Multiple Choice

Jacob Suppliers has not paid out any dividend in the last three years. It does not expect to pay dividends in the next two years either as it recovers from an economic slowdown. Three years from now it expects to pay a dividend of $2.50 and then $3.00 in the following two years. What is the present value of the dividends to be received over the next five years if the discount rate is 15 percent? ( Do not round intermediate calculations. Round final answer to two decimal places.)

• A) $4.85
• B) $5.37
• C) $5.50
• D) $6.14

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Definitions:

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

B.F. Skinner

B.F. Skinner was an American psychologist and behaviorist known for his work in developing the theory of operant conditioning, emphasizing the effects of reinforcement and punishment on behavior.

Unconditioned Response

A natural, automatic reaction to a stimulus, not learned or based on past experience.

Unconditioned Stimulus

In classical conditioning, this refers to a stimulus that naturally and automatically triggers a response without any prior learning.