Fred Flintlock Wants to Earn a Total of 10% on His

question 97

Multiple Choice

Fred Flintlock wants to earn a total of 10% on his investments.He recently purchased shares of ABC equity at a price of €20.The share pays a €1 a year dividend.The price of ABC shares need to
_____ if Fred is to achieve his 10% rate of return.

• A)remain constant
• B)decrease by 5%
• C)increase by 5%
• D)increase by 10%
• E)increase by 15%

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