Electronics,Inc

question 8

Multiple Choice

Electronics,Inc.common stock returned a nifty 23.5 percent rate of return last year.The dividend amount was $0.25 a share which equated to a dividend yield of 0.95 percent.What was the rate of price appreciation for the year?

• A)22.55 percent
• B)23.38 percent
• C)23.60 percent
• D)23.87 percent
• E)23.52 percent

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Definitions:

APS

Average Propensity to Save, the proportion of total income that is saved by a household or economy.

Saving

The act of setting aside a portion of income for future use, typically in a bank account or other secure investment.

Disposable Income

Resources meant for household spending and saving once income tax obligations are settled.

APC

The average propensity to consume, which is the fraction of total income that is spent on consumption as opposed to being saved.