Owen Inc. has a current stock price of $15.00 and is expected to pay a $0.80 dividend in one year. If Owen's equity cost of capital is 12%, what price would its stock be expected to sell for immediately after it pays the dividend?
A) $11.20
B) $12.80
C) $16.80
D) $16.00
Answer: D
You might also like to view...
The lock on a hotel door is fixed by John the Facilities Engineer at the request of Mary the Front Desk Manager prior to a guest arriving. In the system design process this would belong to which part of the flowchart?
a. physical evidence b. onstage contact employee action c. backstage contact employee action d. support process
Which of the following best describes the typical relationship between variable costs and volume?
A) Total variable costs increase in an erratic, unpredictable fashion with changes in volume. B) Total variable costs stay constant with changes in volume. C) Unit variable costs increase with changes in volume up to a certain point and then remain constant. D) Total variable costs increase in direct proportion to increases in volume.
A(n) ________ is a government ban or restriction on the amount of a specific currency that is permitted to be traded or purchased
A) tariff B) exchange control C) quota D) barter E) franchise
A blue ocean strategy differs from a low-cost strategy in that
A. economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader. B. a blue ocean's research and development focus is on process technologies, and a cost-leader's focus is on product technologies. C. the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created. D. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.