You Sold Your Motorcycle and Accepted a Note with the Following

question 62

Multiple Choice

You sold your motorcycle and accepted a note with the following cash flow stream as your payment.What was the effective price you received for the car assuming an interest rate of 6.0%?

• A) $5,987
• B) $6,286
• C) $6,600
• D) $6,930
• E) $7,277

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Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at regular intervals every three months.

Dividend Yield

The annual dividend a company provides vis-a-vis its stock price, presented as a financial ratio.

Dividend Income

Income received from owning shares in a company that pays dividends to its shareholders.