Super Computer Company's Stock Is Selling for $100 Per Share

question 15

Multiple Choice

Super Computer Company's stock is selling for $100 per share today. It is expected that this stock will pay a dividend of 6 dollars per share, and then be sold for $114 per share at the end of one year. Calculate the expected rate of return for the shareholders.

• A) 20%
• B) 15%
• C) 10%
• D) 25%

---

Definitions:

Logrolling

A practice in politics where individuals or parties exchange support for each other's proposals or legislation, often regardless of the merits of the involved issues.

Elected Officials

Individuals chosen through an electoral process to hold public office and make policy decisions.

Logrolling

A practice in political decision-making processes where parties agree to vote for each other's proposed bills or policies, even if they do not have immediate personal interest, to ensure mutual benefit.

Economic Efficiency

Economic efficiency occurs when resources are allocated in a way that maximizes productivity while minimizing waste and inefficiencies.