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:

Purpose

The reason for which something is done or created or for which something exists.

Anthropocentrism

A viewpoint valuing humans above all other species, interpreting or regarding the world solely in terms of human experiences and values.

Environmental Decisions

Decision-making processes that consider the environmental impacts of actions, often aimed at ensuring sustainable use of natural resources.

Deep Ecology

A holistic approach to environmental management and ethics emphasizing the intrinsic value of all living beings and their interconnectedness.