If the Wall Street Journal Lists a Stock's Dividend as $1

question 91

Multiple Choice

If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock:

• A) pays $1 per share per quarter.
• B) paid $.25 per share per quarter for the past year.
• C) paid $1 during the past quarter, with no future dividends forecast.
• D)is expected to pay an annual dividend of $1 per share next year.

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Definitions:

Risk-Free Interest Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.

Futures Price

The predetermined price at which a futures contract is agreed upon to buy or sell an asset at a future date.

Short Hedge

A risk management strategy used to offset potential losses in investments by taking an opposite position in related assets or derivatives.

Spot Market

A public financial market where commodities or financial instruments are traded for immediate delivery.