The Shares of ABC Ltd Have a Market Price of $4

question 8

Multiple Choice

The shares of ABC Ltd have a market price of $4 and an annual dividend of 17.5 cents per share fully franked at the tax rate of 30 per cent.Calculate the dividend yield after company tax but before personal tax.

• A)16%
• B)2.56%
• C)6.25%
• D)Cannot be calculated as not enough information is provided.

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Definitions:

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, leading to swift price changes and potentially impacting an economy.

Short-Run Aggregate Supply Curve

A curve showing the relationship between the total supply of goods and services and the price level for output in the short run.

Energy Prices

The cost of consumable energy sources, such as oil, natural gas, coal, and electricity, which can fluctuate based on market demand, supply conditions, geopolitical events, and other factors.

Productive Resource

A Productive Resource is any input used in the production of goods or services, including labor, capital, and natural resources.