You Expect a Share of EconNews

question 53

Multiple Choice

You expect a share of EconNews.Com to sell for $65 a year from now and to pay a $2 dividend per share in one year.What should you pay (rounded to the nearest dollar) for the stock today if you require an 8% return?

• A)$60
• B)$62
• C)$67
• D)$70

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Definitions:

Dorsal Cavity

One of two main body cavities in humans; contains the cranial cavity and vertebral canal.

Diaphragm

A large, dome-shaped muscle located at the base of the lungs, playing a crucial role in breathing by contracting and relaxing to allow air in and out of the lungs.