A Firm Is Expected to Pay a $2

question 60

Multiple Choice

A firm is expected to pay a $2.00 dividend per share. The stock is selling in the market place for $50.00 per share. If investors are demanding 10 percent on this stock, what is this stock's growth rate?

• A) 4.73 percent
• B) 5.92 percent
• C) 6.00 percent
• D) 7.29 percent

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Definitions:

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose their electrons; a high concentration of hydrogen ions indicates acidity.

Protons

Positively charged subatomic particles found in the nucleus of an atom, determining the element's atomic number.

Acidic

Having a pH less than 7, indicating a higher concentration of hydrogen ions in a solution, which gives it acidic properties.

Basic

In chemistry, basic describes substances with a pH greater than 7, possessing the ability to accept protons or donate electrons or hydroxide ions.