Suppose That on January 1, 2014, You Bought 100 Shares

question 8

Multiple Choice

Suppose that on January 1, 2014, you bought 100 shares of M.Co for $100 per share with the expectation of receiving a perpetual dividend of $10 per share. On January 1, 2015, M.Co announces that it will increase its annual dividend to $20 per share. Upon announcement, the stock price rises to $200.
-If an investor bought 100 shares of M.Co on January 1,2015,what will be the expected return?

• A)110 percent.
• B)10 percent.
• C)20 percent.

---

Definitions:

Growth Strategy

A plan of action designed to achieve a higher level of market share or company size, often through expansion, product development, or acquisition.

Aggressive Recruitment

A proactive approach to finding and attracting candidates for employment, often using bold strategies and techniques.

Rapidly Rising Wages

A situation where the remuneration for employees increases at a fast pace within a short period.

Increased Job Creation

The process of generating more employment opportunities within an economy or a specific sector.