Alcott's Preferred Stock Pays a Dividend of $1

question 63

Multiple Choice

Alcott's preferred stock pays a dividend of $1.00 per quarter.If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?

• A) 8.03%
• B) 8.24%
• C) 8.45%
• D) 8.67%
• E) 8.89%

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Definitions:

Above-average Values

Above-average values refer to data points or observations that exceed the average or mean value of the data set.

Scatterplot

A scatterplot is a graphical representation used to display the relationship between two variables, with data points plotted on a Cartesian coordinate system.

Form

The structure, appearance, or configuration of something, especially as distinct from its substance or content.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.