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:

Distinct Stages

Distinct stages refer to separate or clearly differentiated phases within a process or development sequence.

Developmental Process

The sequence of physical, psychological, and emotional changes that occur in human beings from birth to the end of life.

Sequence

An ordered series of events, actions, or items, often following a particular arrangement.

Developmental Psychology

A branch of psychology that studies the growth and changes in human behavior and mental processes across the lifespan.