The Current Dividend Yield on Clayton's Metals Common Stock Is

question 63

Multiple Choice

The current dividend yield on Clayton's Metals common stock is 3.2 percent.The company just paid a $1.48 annual dividend and announced plans to pay $1.54 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)7.25 percent
• B)7.82 percent
• C)8.08 percent
• D)8.39 percent
• E)8.75 percent

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Definitions:

Lewis Structure

A Lewis structure is a diagrammatic representation of the arrangement of valence electrons around atoms in molecules, indicating the bonding between atoms as well as the lone pairs of electrons.

Ethyne

A colorless gas with a sharp, distinct odor; the simplest alkyne, it is a hydrocarbon with the formula C2H2.

Acetylene

A hydrocarbon and the simplest alkyne, used as a fuel and a chemical building block, recognized by its formula C2H2.

Covalently Bonded Molecule

A molecule whose atoms are held together by covalent bonds, which involve the sharing of electron pairs between atoms.