You Expect a Share of EconNews

question 98

Multiple Choice

You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $62.73 for one share of the stock today, and you expect a dividend payment of $4, what rate of return do you require?

• A)3.6 percent
• B)6.2 percent
• C)6.4 percent
• D)10 percent

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Definitions:

Measurable Improvements

Quantifiable enhancements or upgrades in processes, outcomes, or performances.

Brainstorming

A creative group activity aimed at generating a large number of ideas or solutions for a specific problem or question.

Using Analogies

The practice of understanding something by comparing it to something else that is seemingly unrelated but shares some relevant characteristics.

Assimilate Information

The process of absorbing and integrating new information into one's existing knowledge base.