Assume That the Relationship Between a Company's Stock Price (Y)

question 10

Multiple Choice

Assume that the relationship between a company's stock price (y) and dividends paid per share (x) is linear. If the slope of the equation is 0.50 and the intercept is 30, what would be the expected stock price if the dividend paid was 3?

• A) 33
• B) 30.50
• C) 31.5
• D) 30

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Definitions:

Metabolism

The set of chemical reactions that occur within a living organism to maintain life, involving the breakdown of substances to generate energy and the synthesis of substances necessary for life.

Nutrients

Essential compounds that organisms need to absorb from their surroundings or diet to support growth, reproduction, and health, including vitamins, minerals, proteins, fats, and carbohydrates.

Supplies Account

The Supplies Account is a record that tracks the costs of consumable items used by a business in its operations, which may include office supplies, small tools, and cleaning products.

Assets

Resources owned or controlled by a business or individual, which are expected to provide future economic benefits.