The Annual Expected Dividend on the S&P Index Was About

question 9

Multiple Choice

The annual expected dividend on the S&P index was about 154.6. If the dividend is expected to grow at a steady rate of 8% a year and the required annual rate of return is 10%, what is the value of the index?

• A) 1193
• B) 1700
• C) 7730
• D) None of the above

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to rapid judgements or problem-solving strategies.

Displacement

A defense mechanism where mind shifts emotional impulses from a real object to a safer substitute target.

Productivity

Productivity refers to the measure of efficiency of a person, machine, factory, or system in converting inputs into useful outputs.

Own Language

The unique linguistic system developed and understood by specific individuals or groups, often seen in twins.