A Stock Just Paid a Dividend of D₀ = $1

question 70

Multiple Choice

A stock just paid a dividend of D₀ = $1.50.The required rate of return is r_s = 9.0%,and the constant growth rate is g = 4.0%.What is the current stock price?

• A) $32.14
• B) $34.32
• C) $27.14
• D) $36.19
• E) $31.20

---

Definitions:

Coping Mechanism

Strategies or techniques that individuals use to manage stress, adversity, or trauma.

Aggression

Behavior intended to harm or intimidate another individual, whether through physical force, verbal assault, or psychological manipulation.

Displacement

A defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.

Adrenal Gland

A gland located above the kidneys that produces hormones such as adrenaline and cortisol, which are critical for the body's stress response.