If a Share of Stock Pays a Dividend of $3

question 40

Multiple Choice

If a share of stock pays a dividend of $3 and closes today at $42, what is its current yield (or return) ?

• A)14 percent
• B)9.3 percent
• C)7.7 percent
• D)7.1 percent

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Definitions:

Persistent Poverty

A long-term state where an individual or group lives below the minimum level of income deemed necessary to achieve an adequate standard of living.

Common Arrangement

A typical or widely accepted way of organizing or structuring something.

Following Divorce

pertains to the period and adaptations individuals and families undergo after the legal dissolution of a marriage.

Adolescence

A developmental stage between childhood and adulthood characterized by physical, psychological, and social changes, typically occurring during the teenage years.