Bechtel Machinery Stock Currently Sells for $65 Per Share

question 54

Multiple Choice

Bechtel Machinery stock currently sells for $65 per share.The market requires a 14 percent return on the firm's stock.The company maintains a constant 8 percent growth rate in dividends.What was the most recent annual dividend per share paid on this stock?

• A)$3.00
• B)$3.61
• C)$3.67
• D)$3.75
• E)$3.91

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Definitions:

Period

A length or portion of time.

Capital Gains Yield

The part of an investment's total return that comes from the increase in its value, not including dividends or interest earnings.

Total Return

The overall gain or loss on an investment over a specific period, including both capital appreciation and dividends or interest, expressed as a percentage.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.