A Stock Pays a Constant Annual Dividend and Sells for $56.10

question 59

Multiple Choice

A stock pays a constant annual dividend and sells for $56.10 a share.If the market rate of return on this stock is 12.5 percent,what is the amount of the next annual dividend?

• A)$5.67
• B)$5.94
• C)$6.21
• D)$6.84
• E)$7.30

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Recession

A significant decline in economic activity across the economy, lasting for months or years, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

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Characterized by financial success and good fortune; denoting a state of economic well-being and growth.

Housewife

A term traditionally used for a woman who manages the household's daily operations and is not employed outside the home.

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The total number of people who are currently employed or actively seeking employment within an economy.