What Is the Rate of Return to an Investor in the Stock

question 15

Multiple Choice

What is the rate of return to an investor in the stock of Bajo Inc. if the current dividend of $0.80 is not expected to change in the foreseeable future? The current price of Bajo is $13.25.

• A) 6.04%
• B) 8.0%
• C) 24.15%
• D) 11.06%

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Definitions:

Service

The action of helping or doing work for someone, often refers to intangible goods offered by businesses.

Excellent

A term used to describe something of very high quality.

Quantitative Data

Information that can be measured and written down with numbers, including any data that is about numeric variables.

Numeric

Relating to, consisting of, or denoting numbers, often used to describe data types that can be quantified and manipulated mathematically.