The Common Stock of Auto Deliveries Sells for $28

question 83

Multiple Choice

The common stock of Auto Deliveries sells for $28.16 a share.The stock is expected to pay $1.35 per share next year when the annual dividend is distributed.The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so.What is the market rate of return on this stock?

• A)7.42 percent
• B)7.79 percent
• C)19.67 percent
• D)20.14 percent
• E)20.86 percent

---

Definitions:

Marketing Mix

The mix of elements a company can manage to encourage consumers to buy its offerings, commonly recognized as the 4Ps: product, price, place, and promotion.

Market Forecast

The projection or estimation of future market trends, sizes, and characteristics based on current and historical data.

Sales in An Industry

The total volume or value of all products or services sold within a specific industry over a certain period.

Future Sales

Projected revenue from selling goods or services over a future period.