RTF, Inc Common Stock Sells for $22 a Share and Pays

question 106

Multiple Choice

RTF, Inc. common stock sells for $22 a share and pays an annual dividend that increases by 3.8% annually. The market rate of return on this stock is 8.2%. What is the amount of the last dividend paid?

• A) $0.88
• B) $0.90
• C) $0.93
• D) $0.97
• E) $1.00

Recognize the impact of market system structures on production, innovation, and risk distribution.

Understand the characteristics and importance of work engagement.

Recognize the role of corporate social responsibility in organizations.

Identify the concept of psychological capital and its components.

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Definitions:

Earnings Per Share

A financial metric that measures the portion of a company's profit allocated to each outstanding share of common stock, presenting a company's profitability.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership value in the company.

Sales Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.

Return on Equity

A financial ratio indicating the relative profitability of a company, calculated by dividing net income by shareholder equity.