Suppose You Plan to Hold a Stock for One Year

question 117

Multiple Choice

Suppose you plan to hold a stock for one year.You expect that,in one year,it will sell for $30 and pay a dividend of $3 per share.If your required return on equity is 10%,what is the most you should be willing to pay for the share today?

• A) $3.30
• B) $23
• C) $30
• D) $33

Calculate future values and present values using compound interest, including for specific future cash needs.

Identify the difference between simple interest and compound interest.

Determine the future value of annuities using the concepts of ordinary annuity and annuity due.

Compute the present value of single sums and annuities under various compounding frequencies.

---

Definitions:

Nurse Anesthetist

A registered nurse specialized in the administration of anesthesia for surgery or other medical procedures.

Emergency Medical Technician

A healthcare professional trained to provide emergency medical services to patients who are injured or critically ill.

Providers

Individuals or organizations that offer healthcare services to patients, such as doctors, nurses, and clinics.

Nurse Practitioner

A registered nurse with advanced training and the ability to diagnose and treat illnesses, often serving as a primary healthcare provider.