You Expect a Share of EconNews

question 152

Multiple Choice

You expect a share of EconNews.Com to sell for $65 a year from now.If you are willing to pay $65.74 for one share of the stock today, and you require a return of 8%, what dividend payment must you expect to receive from the stock?

• A)$4.46
• B)$5.20
• C)$6.00
• D)$9.25

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Definitions:

Premises

Premises refer to statements or ideas assumed to be true and used as the basis for constructing an argument or reasoning.

Conclusions

The end or finish of an event, process, or text, often summarizing the main points or findings.

Convergent Thinking

A cognitive process in which a person has the goal of finding a single, correct answer to a problem, as opposed to divergent thinking which involves generating multiple solutions.

Routine Problem Solving

A type of problem-solving that relies on past experiences and practiced strategies to efficiently address familiar issues.