A Share of Ordinary Shares Just Paid a Dividend of $3.25

question 61

Multiple Choice

A share of ordinary shares just paid a dividend of $3.25 per share.The expected long-run growth rate for this share is 18%.If investors require a rate of return of 24%,what should the price of the share be?

• A)$57.51
• B)$62.25
• C)$71.86
• D)$63.92

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Definitions:

Firm-specific Human Capital

Firm-specific Human Capital refers to the unique knowledge, skills, and experiences that employees acquire through working in a particular firm, making them more valuable to that firm but not necessarily to others.

Technical Human Capital

The specialized knowledge, expertise, and skills related to technology and engineering possessed by individuals, contributing to an organization's competitive advantage.

HR Planning

The process of forecasting an organization's human resource needs and strategizing how to meet these needs, aligning them with the company's goals.

Critical Skill

Essential capability or expertise required to perform a job effectively, often determining success in specific tasks or roles.