Constant Growth: Prior, Inc

question 85

Multiple Choice

Constant growth: Prior, Inc., is expected to grow at a constant rate of 9 percent. If the company's next dividend is $2.75 and its current price is $37.35, what is the required rate of return on this stock? (Round to the nearest percent.)

• A) 13%
• B) 16%
• C) 20%
• D) 21%

---

Definitions:

Prefrontal Cortex

The part of the frontal lobes of the brain lying just behind the forehead, involved in complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Predatory Murderers

Individuals who plan and execute murders in a premeditated and unemotional manner, often for personal gain.

Violence

The use of physical force with the intention of causing harm, damage, or death, often associated with aggression and conflict.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by persistent feelings of sadness and loss of interest.