What Should Be the Price of a Stock That Offers

question 65

Multiple Choice

What should be the price of a stock that offers a $4 annual dividend with no prospects of growth, and has a required return of 12.5 percent?

• A)$8.50
• B)$25.00
• C)$32.00
• D)$50.00

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Definitions:

Genetic Factors

Influences determined by the genes an individual inherits from their parents, affecting various aspects of their physical and psychological traits.

Environmental Factors

Elements of the environment that can influence living organisms, including natural features, human activities, and social conditions.

Synapses

The junctions through which neurons communicate with each other, using chemical or electrical signals.

Human Beings

Members of the species Homo sapiens, characterized by their ability to adapt, think, and create complex cultures.