You Expect a Share of EconNews

question 152

Multiple Choice

You expect a share of EconNews.Com to sell for $65 a year from now.If you are willing to pay $65.74 for one share of the stock today, and you require a return of 8%, what dividend payment must you expect to receive from the stock?

• A)$4.46
• B)$5.20
• C)$6.00
• D)$9.25

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Definitions:

Transfer and Distribution

The process of moving goods from one location to another and allocating them among parties or points of sale.

Antilapse Clause

A provision in a will or estate plan that specifies what happens to a gift if the beneficiary predeceases the donor, often allowing the gift to pass to the beneficiary's heirs.

Incontestability Clause

A part of an insurance contract that precludes an insurance company from challenging statements in an insurance application after a certain period of time.

State Mandated

Requirements or actions imposed by state governments that must be complied with by individuals or entities within that state.