The Analysts Predict That the Price of Corporation's XYZ Stock

question 3

Multiple Choice

The analysts predict that the price of corporation's XYZ stock one year from now will be $22.XYZ announced that is not going to pay dividends next year.You decide that you would be satisfied to earn a 10 percent on the investment on this stock,thus,this stock is worth ________ for you now.

• A) $20
• B) $22
• C) $24
• D) $18

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Definitions:

Attractiveness

Qualities or characteristics of a person or thing that evoke interest, desire, or pleasure in others.

Group Leaders

Individuals who guide, influence, and direct a group aiming to achieve common goals.

Baumeister

Refers to Roy F. Baumeister, a psychologist known for his work on the self, social rejection, belongingness, and other aspects of social psychology.

Normative Influence

Social influence whereby individuals change their behavior or attitudes to conform to norms or expectations of a group to gain acceptance or approval.