What Rate of Return Is Expected from a Stock That

question 109

Multiple Choice

What rate of return is expected from a stock that sells for $30 per share, pays $1.50 annually in dividends, and is expected to sell for $33 per share in one year?

• A)5.00 percent
• B)10.00 percent
• C)14.09 percent
• D)15.00 percent Expected Return =

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Definitions:

Tax Base

The aggregated economic value that is subject to taxation by a governing authority, which helps fund public expenditures.

Business Districts

Areas within a city where the main commercial activities are concentrated, including offices, retail shops, and service providers.

Prime Farmland

Land that is highly suitable for agriculture due to its fertility and ability to sustain long-term crop production.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential and commercial development.