A Stock Paying $5 in Annual Dividends Sells Now for $80

question 100

Multiple Choice

A stock paying $5 in annual dividends sells now for $80 and has an expected return of 14%.What might investors expect to pay for the stock 1 year from now?

• A) $82.20
• B) $86.20
• C) $87.20
• D) $91.20

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Definitions:

Bytecode

A form of instructions that is processed by a virtual machine rather than directly executed by the hardware of a computer.

Interpreter

A program that executes instructions of a high-level programming language directly and translates them line-by-line into machine code.

Bytecode

Intermediate machine-independent code generated by compiling source code, typically Java, which is executed by a virtual machine.

CPU Machine Language

The low-level programming language understood directly by a computer's central processing unit (CPU), consisting of binary code or assembly language.