A Stock Currently Sells for $63 Per Share, and the Required

question 70

Multiple Choice

A stock currently sells for $63 per share, and the required return on the stock is 10%. Assuming a growth rate of 5%, calculate the stock's last dividend paid.

• A) $1
• B) $3
• C) $5
• D) $7

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Definitions:

Nominal Consideration

A token amount in a contract to indicate that a deal has been agreed upon, even if the sum is not reflective of the contract's true value.

Love And Affection

Love and Affection, in legal terms, sometimes appears as a form of consideration in personal contracts, though it is not typically recognized as a valid form of consideration in commercial contracts.

Past Consideration

A benefit or value provided or promised in the past, which cannot be considered valid consideration for a current contract under common law.

Past Consideration

A legal concept indicating that an act done before a contract is made is not valid consideration for the contract.