Super Computer Company's Stock Is Selling for $100 Per Share

question 42

Multiple Choice

Super Computer Company's stock is selling for $100 per share today.It is expected that-at the end of one year-it will pay a dividend of $6 per share and then be sold for $114 per share.Calculate the expected rate of return for the shareholders.

• A)20%
• B)15%
• C)10%
• D)25%

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Definitions:

Team Members

Individuals who contribute their skills and efforts towards achieving the objectives of a collective group or project.

Unexpected Problems

Challenges or issues that arise without warning and require immediate attention or novel solutions.

Common Information Effect

The tendency for group members to focus and overweigh information that is shared or known by all, potentially at the expense of unique, critical data.

Uneven Distribution

The unequal allocation of resources, wealth, opportunities, or other elements across a population, region, or among group members.