Shares of ABT Stock Offer an Expected Total Return of 14.6

question 36

Multiple Choice

Shares of ABT stock offer an expected total return of 14.6 percent.What is the dividend yield if the dividend increases by 2.8 percent annually?

• A)17.40%
• B)13.20%
• C)11.80%
• D)8.74%
• E)12.80%

---

Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

Product Costs

The total costs directly involved in manufacturing a product, including material, labor, and overhead expenses.

Period Costs

Expenses that are not directly tied to the production process and are typically accounted for as expenses in the period they are incurred.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing to the coverage of fixed costs and profit generation.