Zephyr Electricals Is a Company with No Growth Potential

question 44

Multiple Choice

Zephyr Electricals is a company with no growth potential. Its last dividend payment was $4.50, and it expects no change in future dividends. What is the current price of the company's stock given a discount rate of 9 percent?

• A) $40.50
• B) $50.00
• C) $45.00
• D) $500.00

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Definitions:

Hofstede's Dimensions

A framework for cross-cultural communication developed by Geert Hofstede, which describes the effects of a society's culture on the values of its members and how these values relate to behavior.

Primary Appraisal

The initial evaluation process where the individual assesses the significance of a stressor as being positive, neutral, or negative.

Potential Stressor

An event, situation, or stimulus that has the capacity to induce stress, depending on the individual's perception, experiences, and coping mechanisms.

Abstract Painting

A style of painting that does not attempt to represent external reality, but seeks to achieve its effect through shapes, colors, and textures.