The Common Stock of JL Recyclers Has a Required Return

question 33

Multiple Choice

The common stock of JL Recyclers has a required return of 12 percent and a current value of $18.72.The company pays its dividend annually and increases the amount by 4 percent each year.You own 300 shares of this stock.What was the total amount of the last dividend you received?

• A) $319
• B) $360
• C) $432
• D) $480
• E) $513

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Definitions:

Public Sector

The sector of an economy that is controlled by the government and includes government services and enterprises.

Free-Rider Problem

A situation in public goods where individuals benefit without contributing due to non-excludability.

Private Charity

Voluntary giving by individuals or organizations to those in need, without government intervention or assistance.

Government Intervention

Actions taken by a government to influence the economy beyond its basic functions, such as regulation, subsidies, and tax policies.