If Jim Invested $100,000 in an Annual Dividend-Paying Stock Today

question 89

Multiple Choice

If Jim invested $100,000 in an annual dividend-paying stock today with a 7 percent return, what investment time period will give Jim the greatest after-tax return?

• A)1 year
• B)5 years
• C)10 years
• D)20 years
• E)All yield the same after-tax return.

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Samples

Selections from a larger population used to estimate characteristics of the whole population.

P-chart

A P-chart is a type of control chart used in quality control to monitor the proportion of defective items in a process over time.

Control Limits

Statistical boundaries set on process control charts that indicate the acceptable range of process variation.