The last dividend on Spirex Corporation's common stock was $4.00, and the expected growth rate is 10%. If you require a rate of return of 20%, what is the highest price you should be willing to pay for this stock?

A) $44.00
B) $38.50
C) $40.00
D) $45.69
E) $50.00


A

Business

You might also like to view...

Which of the following statements is true about perceived value?

A) A single perceived value exists in the marketplace. B) When the price of a product is higher than the perceived value, it is known as value pricing. C) Perceived value is always relative. D) Perceived value is standard across customers with similar purchasing power.

Business

Those who argue in favor of import protection generally give the impression that such restricted trade will

a. decrease the level of national security. b. provide benefits to some particular industry. c. provide benefits to the entire nation. d. not yield welfare losses for the nation.

Business

Answer the following statements true (T) or false (F)

1. When working with culturally diverse employees, managers can benefit from using silence as a type of response. 2. Finishing someone’s sentences for them indicates a strong communication relationship and encourages the speaker. 3. An open-door policy is NOT always successful in inducing communication. 4. The sending side of the communication process is more difficult than the receiving side.

Business

Currently most businesses measure

A. none of their impacts, because economic measures are aggregated. B. the economic impact of their activities and ignore the social and environmental. C. economic and environmental impacts, but not their social impacts. D. their market share in economic terms but not social or environmental terms.

Business