The Current Dividend Yield on CJ's Common Stock Is 1

question 41

Multiple Choice

The current dividend yield on CJ's common stock is 1.89 percent. The company just paid an annual dividend of $1.56 and announced plans to pay $1.70 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?

• A) 10.86 percent
• B) 15.82 percent
• C) 9.08 percent
• D) 13.39 percent
• E) 12.75 percent

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Definitions:

Photopupillary Reflex

The reflex constriction of the pupils when the eyes are exposed to bright light.

Parasympathetic Division

A branch of the autonomic nervous system responsible for conserving energy and lowering the heart rate, among other functions, often referred to as the "rest and digest" system.

Autonomic Nervous System

The part of the nervous system that regulates involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Refract

The process by which a wave, such as light, changes direction when it passes from one medium to another at an angle.