You Have Decided That You Would Like to Own Some

question 340

Multiple Choice

You have decided that you would like to own some shares of GH Corp. but need an expected 12% rate of return to compensate for the perceived risk of such ownership. What is the maximum you
Are willing to spend per share to buy GH stock if the company pays a constant $3.50 annual
Dividend per share?

• A) $26.04
• B) $29.17
• C) $32.67
• D) $34.29
• E) $36.59

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Definitions:

Ego

A psychoanalytic term referring to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Resistance

In psychology, the opposition to making changes or exploring unconscious feelings and thoughts during therapy.

Anal Stage

The second stage in Freud's psychosexual development theory, focusing on toilet training and control issues, leading to traits of orderliness or messiness.

Psychosexual Development

Freud's theory of childhood stages of development, each characterized by an erogenous zone that is the source of a child's psychosexual energy.