You Want to Purchase Some Shares of JJ Farms Stock

question 94

Multiple Choice

You want to purchase some shares of JJ Farms stock but need a rate of return of 17.5 percent to compensate for the perceived risk. What is the maximum you are willing to pay per share for this stock if the company pays a constant $2.43 annual dividend per share?

• A) $11.11
• B) $13.89
• C) $9.26
• D) $7.20
• E) $8.47

---

Definitions:

Halo Errors

A type of bias in which one's overall impression of a person, organization, or brand influences their feelings and thoughts about that entity's specific traits.

Human Factors Psychology

A field of psychology that focuses on designing products and processes that match the human body and cognitive abilities.

Leadership

The action of leading a group of people or an organization, often involving the ability to influence, motivate, and enable others to contribute toward organizational success.

Charismatic

Possessing a compelling charm that inspires devotion or admiration in others.