A Stock Is Priced at $38

question 4

Multiple Choice

A stock is priced at $38.24 a share and has a market rate of return of 9.65 percent.What is the dividend growth rate if the company plans to pay an annual dividend of $.48 a share next year?

• A)7.42 percent
• B)8.39 percent
• C)2.23 percent
• D)7.60 percent
• E)1.26 percent

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Definitions:

Health Care

The maintenance or improvement of health via the prevention, diagnosis, and treatment of illness, injury, and other physical and mental impairments in humans.

Affluent

Having a great deal of wealth or rich resources, often in terms of financial standing.

Stratification Theories

Theories that emphasize that social forces—particularly those related to a person’s social stratum or social category—limit individual choices, and affect a person’s ability to function in late adulthood because past stratification continues to limit life in various ways.

Organize

The act of arranging or structuring things in a systematic way for efficiency or order.