You Are Considering Acquiring a Common Stock That You Would

question 51

Multiple Choice

You are considering acquiring a common stock that you would like to hold for one year.You expect to receive both $1.25 in dividends and $32 from the sale of the stock at the end of the year.The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return.

• A)$30.23
• B)$24.11
• C)$26.52
• D)$27.50
• E)none of the above

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Definitions:

Compulsion

An irresistible urge to perform an irrational or a seemingly senseless act repeatedly, often linked to obsessive-compulsive disorder.

Phobia

A phobia is an extreme or irrational fear of or aversion to something, significantly affecting a person's life and behavior.

Mania

Mania represents a mental state characterized by extremely elevated mood, energy, and unusual thought patterns, often seen in bipolar disorder.

Obsession

A persistent, intrusive, and unwanted thought, urge, or image that causes significant anxiety or distress.