Which of the Following Statements Is Correct About a Stock

question 111

Multiple Choice

Which of the following statements is correct about a stock currently selling for $50 per share that has a 16 percent expected return and a 10 percent expected capital appreciation?

• A)Its expected dividend exceeds the actual dividend
• B)Its expected return will exceed the actual return
• C)It is expected to pay $3 in annual dividends
• D)It is expected to pay $8 in annual dividends Expected return = expected dividend yield + expected capital appreciation
• 16% = expected dividend yield + 10%
• 6% = expected dividend yield

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Definitions:

Transference Behaviors

In psychotherapy, the phenomenon where clients project feelings and attitudes from past relationships onto the therapist.

Thought Patterns

The habitual ways in which one tends to think or process information, which can influence behavior and emotions.

Psychoanalysis

A therapeutic technique and theory of psychological disorders, emphasizing unconscious conflicts and childhood experiences.

Cognitive Therapies

Psychological treatments that focus on changing faulty or irrational thinking patterns, beliefs, and attitudes.