Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners such as selling or repurchasing shares of common stocks and paying dividends. A. True
B. False

False

Explanation:

The cash flow from investing activities is a cash flow section that shows cash generated or the cash that is spent which relates to activities involving investment and this include buying physical assets, the investments in securities, or sale of assets or securities.

Therefore, the above analysis I the question is wrong.

What is the current stock price?

$25.57

Explanation:

The company just paid a Dividend of $1,50, the next year they will pay a Dividend of $1,50 plus 1,04 (Growth rate), Dividend next year = $1,56

To a constant growth of dividends and assuming it's a constant growth we'll  applied the Gordon growth model (GGM), which state that a price per share it's determined by the next formula:

Price per Share = D / (r - g)   Where:

D = the estimated value of next year's dividend

r = The required rate of return

g = the constant growth rate

To this case the value is:  ($1,50 * 1,04) / (10,1%-4%) = $1,56 / 0,061 = $25,57