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

question 58

Multiple Choice

A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%.What might investors expect to pay for the stock one year from now after the next dividend has been paid?

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

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Definitions:

Unfamiliar Audience

A group of people who are not well known or understood by the speaker or writer, often requiring tailored communication strategies.

Informational Needs

The specific data or knowledge required by individuals or organizations to make informed decisions or solve problems.

Oral Channel

A method of communication that involves spoken words, such as face-to-face conversations or telephone calls.

Immediate Feedback

The instant response or reaction to an action or statement, which is crucial for effective communication and learning processes.