You Are Considering Purchasing One of Two Stocks

question 1

Multiple Choice

You are considering purchasing one of two stocks.Stock A is expected to pay a $2.50 dividend,and has historically grown at 6%.Stock B is expected to pay a $3.00 dividend and has historically grown at 4%.Both are the same risk,and you desire to earn a 16% return.Which of the following is true?

• A)You should buy Stock A,since its estimated price is higher than Stock B.
• B)You should buy Stock B,since its estimated price is higher than Stock A.
• C)You should buy Stock A,since its estimated price is lower than Stock B.
• D)You should buy Stock B,since its estimated price is lower than Stock A.
• E)You should buy either Stock A or B,since the estimated prices are the same.

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Definitions:

Retinal Vasculitis

Inflammation of the blood vessels in the retina, which can compromise vision and lead to severe retinal damage.

Hypertensive Retinopathy

A condition characterized by damage to the retina of the eye due to high blood pressure, leading to blurred vision or vision loss.

Proliferative Retinopathy

A condition involving the growth of new, abnormal blood vessels in the retina, often related to diabetes.

Bullous Keratopathy

A condition characterized by swelling and blisters on the cornea, leading to vision impairment.