Wild Acre Metals Has Ordinary Shares That Paid a Dividend

question 49

Multiple Choice

Wild Acre Metals has ordinary shares that paid a dividend of $1.00 a share last year.You expect the share to grow at 5% per year.If the appropriate rate of return on this share is 12%,how much are you willing to pay for the share today?

• A)$13.00
• B)$15.00
• C)$17.00
• D)$19.00

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Definitions:

ABS System

The Anti-lock Braking System, designed to help prevent the wheels on a vehicle from locking up while braking, allowing the driver to maintain more control during emergency stops.

Rotational Speed

The number of rotations per unit time, usually measured in revolutions per minute (RPM).

Voltage Generated

The production of electrical potential difference between two points in a circuit, often as a result of chemical reactions within batteries or by electromagnetic induction.

Wheel Speed Sensor

A sensor used in vehicles to measure the speed of a wheel, crucial for the proper functioning of systems like ABS (Anti-lock Braking System).