An Investor Is Contemplating the Purchase of Ordinary Shares at the Beginning

question 100

Multiple Choice

An investor is contemplating the purchase of ordinary shares at the beginning of this year and to hold the shares for one year.The investor expects the year-end dividend to be $2.00 and expects a year-end price for the share of $40.If this investor's required rate of return is 10%,then the value of the share to this investor is

• A)$36.36.
• B)$38.18.
• C)$33.06.
• D)$34.88.

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Definitions:

Company Fault

Situations where a business is held responsible for an error, mistake, or failure.

Repair The Relationship

The process of mending or restoring a damaged or strained relationship through communication, understanding, and reconciliation.

Claims

Assertions or demands for something as due or belonging to one, often in reference to products or services in business contexts.

Adjustment Requests

Requests made to modify or amend a particular element or component, often seen in business or operational contexts.