A Particular Stock Pays an Annual Dividend of $2 Per

question 53

Multiple Choice

A particular stock pays an annual dividend of $2 per share and the annual dividend yield is 4 percent. The price of a share of this stock is

• A)$2.08.
• B)$5.00.
• C)$8.00
• D)$50.00.

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Definitions:

Operating Activities

Activities that relate to the primary operations of a company, such as selling products or providing services, as opposed to financing or investing activities.

Investing Activities

Financial transactions involving the purchase or sale of long-term assets and investments.

Net Cash

The amount of cash and cash equivalents minus any liabilities or financial obligations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is exchanged.