The Reading Co

question 50

Multiple Choice

The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3% annually. The last dividend it paid was $0.90 a share. What will the company's dividend be in six years?

• A) $0.90
• B) $0.93
• C) $1.04
• D) $1.07
• E) $1.11

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Definitions:

Outsourcing

The business practice of hiring a third party to perform services, handle operations or provide goods that are either cost-prohibitive or not within the core competencies of the original company.

Employee Empowerment

The practice of giving employees autonomy, authority, and responsibility to make decisions regarding their specific organizational tasks.

Restructuring

The process of organizing a company, operation, or structure in a new way to increase efficiency or improve performance, which often includes changes in business model, operations, or strategy.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs in a pyramid.