Cherry Auto Sales just opened and does not expect to pay a dividend during its first year. At the end of its second year, Cherry's owners expect to pay a $2.00 dividend and plan to increase it 7% annually
If the required return is 20%, what should Cherry's stock price be?
A) $11.42
B) $10.92
C) $13.06
D) $12.82
E) $15.48
D
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Helen has just taken out a modified whole life policy. Which of the following statements is CORRECT?
A) The face amount will be lower during the next few years and then be increased to a higher, constant level. B) The face amount will be higher during the next few years and then remain constant at a lower level. C) The premium will be higher during the next few years and then remain constant at a lower level. D) The premium will be lower during the next few years and then be increased to a higher, constant level."
When Jillian Jones is confronted with inconsistencies about a purchase, she is feeling cognitive dissonance
Indicate whether the statement is true or false