Jim Owns Shares of Abco, Inc

question 324

Multiple Choice

Jim owns shares of Abco, Inc. preferred stock which he says provides him with a constant 6.58% rate of return. The stock is currently priced at $45.60 a share. What is the amount of the dividend
Per share?

• A) $3.00
• B) $3.15
• C) $3.50
• D) $3.54
• E) $3.62

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Definitions:

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decision Avoidance

The phenomenon where an individual or group deliberately chooses not to make a decision, often to avoid responsibility or negative outcomes.

Certainty Effect

The tendency for people to overweight outcomes that are certain relative to outcomes that are merely probable.

Entity Theorists

Individuals who believe traits and abilities are fixed and unchangeable.