A Stock Currently Sells for $30 Per Share and Pays

question 46

Multiple Choice

A stock currently sells for $30 per share and pays $1.00 per year in dividends.What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments?

• A) $38
• B) $33.50
• C) $34.50
• D) $33.93

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Organization Pattern

The structured arrangement or method used to order and present information in a logical, coherent manner.

Benefits

Advantages or positive outcomes that result from actions, policies, or services.

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A physical, mental, and spiritual practice or discipline that originated in ancient India, aiming to achieve tranquility, fitness, and consciousness.

Flexibility

The quality of being adaptable or variable in face of change or new circumstances.