What Is the Rate of Return to an Investor in the Stock

question 15

Multiple Choice

What is the rate of return to an investor in the stock of Bajo Inc. if the current dividend of $0.80 is not expected to change in the foreseeable future? The current price of Bajo is $13.25.

• A) 6.04%
• B) 8.0%
• C) 24.15%
• D) 11.06%

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Definitions:

Government Control

The involvement or intervention by governmental bodies in regulating or directing economic activities, market practices, and industry standards.

Rent

A periodic payment made to an owner for the use of their property, especially for living in an apartment or leasing a commercial space.

Housing

Refers to residential structures that provide shelter or accommodation, including apartments, houses, and other types of living spaces.

Injustice

The situation or practice where fairness and rights are not upheld, often leading to unequal treatment or discrimination.