The company will be in business for 8 years and not have a liquidating dividend. The required rate of return for this investment is 10%. What is the price of this stock today? 28.91 63.75 62.50 28.34

$28.91

Explanation:

Price of stock = Sum of present value of dividends

Year                      Dividend                                      Present Value            

1                            5 * 1.02 = $5.10                          5.10/ (1 + 10%) = $4.64        

2                            5.1 * 1.02 = $5.20                       5.20/ 1.1² =      $4.30

3                           5.20 * 1.02 = $5.30                    5.30 / 1.1³ =      $3.98

4                           5.30 * 1.02 = $5.41                     5.41 /1.1⁴   =       $3.70

5                           5.41 * 1.02 = $5.52                     5.52/1.1⁵ =        $3.43

6                           5.52 * 1.02 = $5.63                     5.63/1.1⁶ =       $3.18

7                            5.63 *1.02   = $5.74                    5.74/1.1⁷ =        $2.94

8                          5.74 * 1.02   = $5.85                     5.85/1.1⁸ =       $2.73

Total                                                                                                 $28.91

The correct answer to this open question is the following.

Unfortunately, you did not attach the "questions below." So we do not know what they are or what they say.

However, trying to help, we can comment on the following.

The good I am most familiar with is oil because my father works in the oil industry.

Oil has an enormous economic utility because it literally "moves the world." Oil is used in almost every industry. We use it on a daily basis. First of all, we use gasoline in our cars. We use gas in our homes. Hotels, corporations, public service buildings use gas or gasoline in different forms.

Oil companies are one the most powerful industries in the world. Companies such as British Petroleum, Exxon, Mobile, Shell, and many others, are dominant industries in most of the countries. Some economies are based on oil and its fluctuant price.

Although governments are trying to move on and use alternative forms of energy that protect the environment, oil is still the most important form of energy on planet Earth.