What Should Be the Price of a Stock That Offers

question 15

Multiple Choice

What should be the price of a stock that offers a $4 annual dividend with no prospects of growth,and has a required return of 12.5%?

• A) $8.50
• B) $25.00
• C) $32.00
• D) $50.00

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Definitions:

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Sociological Explanation

An explanation based on the social contexts and influences that shape individuals' behaviors, interactions, and structures within society.