A Stock Pays a Constant Annual Dividend and Sells for $31.11

question 207

Multiple Choice

A stock pays a constant annual dividend and sells for $31.11 a share. If the rate of return on this stock is 9%, what is the dividend amount?

• A) $1.40
• B) $1.80
• C) $2.20
• D) $2.40
• E) $2.80

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Definitions:

Credit Unions

Member-owned financial cooperatives that provide savings, credit, and other financial services to their members.

Check-Cashing Stores

Businesses that offer check cashing services and other financial transactions, often serving underbanked communities.

Means of Payment

Various methods through which debts can be paid, ranging from physical currency to electronic transfers of funds.

Precious Metals

Metals that are rare and have high economic value, such as gold, silver, and platinum.