You Are Evaluating the Purchase of Cellars Pty Ltd Ordinary

question 76

Multiple Choice

You are evaluating the purchase of Cellars Pty Ltd ordinary shares that just paid a dividend of $1.80.You expect the dividend to grow at a rate of 12% for the next three years.You plan to hold the shares for three years and then sell them.You estimate that a required rate of return of 17.5% will be adequate compensation for this investment.Calculate the present value of the expected dividends.

• A)$4.91
• B)$5.40
• C)$9.80
• D)$6.80

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Nations with a gross national income (GNI) per capita that falls between low-income and high-income thresholds defined by international financial institutions.

Infant Mortality Rate

A statistical measure representing the number of infant deaths per 1,000 live births in a given year.

The Congo

A country located in Central Africa, formally known as the Democratic Republic of the Congo, known for its rich natural resources but also its political instability.

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The measure of output (such as crops or livestock) produced per unit of input (like labor or land) in agricultural activities.