A Stock Currently Sells for $50 Per Share,has an Expected

question 38

Multiple Choice

A stock currently sells for $50 per share,has an expected return of 15%,and an expected capital appreciation rate of 10%.What is the amount of the expected dividend?

• A) $2.50
• B) $2.75
• C) $3.00
• D) $3.50

---

Definitions:

Capital-Saving

Technology or methods that allow the same level of production with less investment in capital.

Technological Advance

The process of introducing new technologies or improving existing ones to increase efficiency, productivity, or quality.

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as machinery, buildings, and equipment.

Investment In-Kind

Contributions of goods, services, or other non-monetary assets to an investment or project rather than cash.