Spacefood Products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 5% per year each year in the future
What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 12%?
A) $24.00
B) $22.29
C) $30.86
D) $34.29
Answer: D
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Sales increases from customer-oriented promotions reflect accelerated purchases by loyal buyers rather than new sales volume from brand switchers
Indicate whether the statement is true or false
Chuck believes that his business has grown because of his personal involvement in every step of the way. What advice do you offer Chuck as he continues to expand his business in new Asian markets?
A) Contact distributors directly to avoid misunderstandings that can arise when using third-party contacts. B) Always stick to corporate settings when doing business to avoid misunderstandings that can arise in less formal environments. C) Protect your interests by insisting on detailed contracts from the start. D) Use proper intermediaries as required in Pacific Rim nations.