You Are Evaluating the Purchase of Charbridge,Inc

question 12

Multiple Choice

You are evaluating the purchase of Charbridge,Inc.ordinary shares that currently pay no dividend and is not expected to do so for many years.Because of rapidly growing sales and profits,you believe the share will be worth $51.50 in 3 years.If your required rate of return is 16%,what is the share worth today?

• A)$59.74
• B)$51.25
• C)$32.99
• D)$0.00 because shares that do not pay dividends have no value.

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Definitions:

Communicative Skill

The ability to convey information effectively and efficiently through verbal, non-verbal, written, and visual means.

Human Skill

The ability to work effectively with others, including communication, empathy, and management of relationships.

Technical Skill

The ability to perform specific tasks related to a particular field of expertise, often requiring specialized knowledge and proficiency.

Management Function

The activities and responsibilities such as planning, organizing, directing, and controlling, performed by managers to achieve organizational goals.