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.

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Definitions:

Formal Democracy

Involves regular, competitive elections.

Socialist Democracy

Socialist democracy is a political system that combines democracy with socialist principles, aiming for equal distribution of wealth and resources among its citizens through democratic means.

Stable Democratic Society

A state of social equilibrium where a democratic form of government operates effectively, ensuring civil liberties and the rule of law.

Economic Elites

refer to individuals or groups who possess a disproportionate amount of wealth, resources, and power within a society.