How Much Are You Willing to Pay for One Share

question 31

Multiple Choice

How much are you willing to pay for one share of stock if the company just paid an $.80 annual dividend,the dividends increase by 4% annually and you require an 8% rate of return?

• A) $19.23
• B) $20.00
• C) $20.40
• D) $20.80
• E) $21.63

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Definitions:

Internal Consistency

A measure used to evaluate the reliability of a test or scale, indicating how well the various items assess the same characteristic.

Split-half Reliability

A measure of consistency where a test is divided into two parts and the scores from each half are compared to assess the test's reliability.

Coefficient Alpha

A statistic that is used to measure the internal consistency or reliability of a psychometric instrument.

Double-unaware Design

A research methodology where neither the participants nor the experimenters are aware of which individuals are in the control group versus the experimental group.