The Busby Corporation Had a Share Price at the Start

question 111

Multiple Choice

The Busby Corporation had a share price at the start of the year of $26.20,paid a dividend of $0.56 at the end of the year,and had a share price of $29.00 at the end of the year.Which of the following is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this period?

• A)5%
• B)7%
• C)9%
• D)13%
• E)15%

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the money supply.

Weekly Disbursements

Regular payments or expenditures made by an organization or individual within a one-week period, often related to operational costs.

Interest Rate

The sum demanded by a lender, as a percentage of the principal sum, for allowing a borrower to use their resources.