A Stock Paying $5 in Annual Dividends Sells Now for $80

question 38

Multiple Choice

A stock paying $5 in annual dividends sells now for $80 and has an expected return of 14 percent.What might investors expect to pay for the stock one year from now?

• A)$82.20
• B)$86.20
• C)$87.20
• D)$91.20

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Definitions:

Caffeine Intake

The consumption of the stimulant caffeine, found in coffee, tea, and many soft drinks, which affects the central nervous system.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Independent Variable

"A manipulated experimental factor; the variable that the experimenter changes to see what its effects are."

Longitudinal Design

A special kind of systematic observation, used by correlational researchers, that involves obtaining measures of the variables of interest in multiple waves over time.