Use the Following Information to Answer the Question(s)below

question 48

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metals has a current stock price of $30 share,is expected to pay a dividend of $1.20 in one year,and its expected price right after paying that dividend is $33.
-Rearden's expected capital gains yield is closest to:

• A)4.0%.
• B)6.4%.
• C)8.2%.
• D)10.0%.

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Definitions:

Probable Cause

A reasonable basis, found through evidence or facts, for believing that a person has committed a crime, used as a standard for arrests and issuing search warrants.

First Appearance

The initial appearance of an arrested individual before a judge, who determines whether there was probable cause for the arrest. If the judge ascertains that probable cause did not exist, the individual is freed.

Arraigned

The act of bringing a defendant before a court to formally charge them with a crime and take their plea.

Racketeer Influenced

Racketeer Influenced refers to activities or organizations affected by criminal influences, especially related to coercion, fraud, bribery, and other illegal activities as outlined by RICO (Racketeer Influenced and Corrupt Organizations Act).