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%

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Definitions:

Divisional Departmentation

A method of organizing a company's structure where divisions are formed based on products, services, or markets, each with its own set of functions.

Highly Trained Individuals

Persons who have received extensive instruction and practice in a particular skill set or field of study.

External Demands

The requirements, pressures, or needs placed upon an organization or individual by external factors or entities.

Decentralization

The dispersion of functions, powers, people, or things away from a central location or authority.