A Share of Stock Is Currently Selling for $20

question 57

Multiple Choice

A share of stock is currently selling for $20.80. If the dividend just paid is $2.00 and investors are seeking a 14% return, what is the anticipated rate of constant growth?

• A)1%
• B)4%
• C)0%
• D)None of the above

---

Definitions:

Appraisal Motive

The desire to find out why things happen and what the causes of events are, often related to understanding one's own emotional responses.

Consistency Motive

The desire to maintain harmony and coherence among one’s beliefs, attitudes, and behaviors to avoid cognitive dissonance.

Self-Handicapping

A behavior where an individual creates obstacles or excuses to avoid self-blame in case of failure.

Poor Health

A state characterized by ill health or low vitality, often resulting from disease, lifestyle, or environmental factors.