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:

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders, going beyond profit-making.

Legitimate Power

Authority that is recognized and accepted due to one's official or formal position within an organization.

Compliance

The act of conforming to or following rules, guidelines, or standards.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.