What Should Be the Price of a Stock That Offers

question 65

Multiple Choice

What should be the price of a stock that offers a $4 annual dividend with no prospects of growth, and has a required return of 12.5 percent?

• A)$8.50
• B)$25.00
• C)$32.00
• D)$50.00

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Definitions:

Interpersonal Skill

The ability to communicate or interact well with other people, often demonstrating empathy, negotiation, and conflict-resolution abilities.

Formal Education

Structured learning that takes place within an academic institution, leading to certification or a degree.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions, which are consistent across various situations.

Skills

The expertise or ability acquired through practice, training, or experience to perform a task effectively.