The Bermuda Triangle Store Pays a Constant Dividend

question 81

Multiple Choice

The Bermuda Triangle Store pays a constant dividend.Last year,the dividend yield was 5.4 percent when the stock was selling for $15 a share.What must the stock price be today if the market currently requires a 3.8 percent dividend yield on this stock?

• A)$21.32
• B)$12.30
• C)$11.59
• D)$19.22
• E)$22.48

---

Definitions:

Workers

Individuals engaged in some form of employment, contributing labor for the production of goods and services.

Congressional Budget Office

A federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

Agricultural Subsidies

are governmental financial support paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Fiscal Policy

Government policies concerning taxation and spending to influence the economy.