A fiRm's Stock Has a Required Return of 10

question 215

Multiple Choice

A firm's stock has a required return of 10%. The stock's dividend yield is 6%. What dividend did the firm just pay if the current stock price is $40?

• A) $2.18
• B) $2.31
• C) $2.50
• D) $2.87
• E) $3.60

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Definitions:

Identifying Information

Personal data that can be used on its own or with other information to identify, contact, or locate a single person, or to identify an individual in context.

Attribute

Each characteristic or quality of a particular entity.

Particular Entity

A specific thing or being, especially one that is distinct among other similar entities.

Foreign Key

A field (or group of fields) in one table that uniquely identifies a row (or record) of another table.