The Common Stock of J

question 302

Multiple Choice

The common stock of J. K. Laminates sells for $32.60 a share. The stock is expected to pay $2.10 per share next month when the annual dividend is distributed. J. K.'s has established a pattern of increasing its dividends by 3.5% annually and expects to continue doing so. What is the market rate of return on this stock?

• A) 6.44%
• B) 6.67%
• C) 7.03%
• D) 9.94%
• E) 10.29%

---

Definitions:

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires, designed to gauge the attitude or response of a subject towards a set of criteria, using a linear scale.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations or applications under the same conditions.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

100% Reliable

An absolute level of dependability and consistency in performance or outcome that is often considered unachievable in practice.