The Common Stock of JL Recyclers Has a Required Return

question 16

Multiple Choice

The common stock of JL Recyclers has a required return of 14 percent and a current value of $18.72. The company pays its dividend annually and increases the amount by 4 percent each year. You own 200 shares of this stock. What was the total amount of the last dividend you received?

• A) $319
• B) $360
• C) $462
• D) $480
• E) $513

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Definitions:

Agency Formation

The legal process and principles involved in creating an agency relationship, whereby one party (the agent) is authorized to act on behalf of another (the principal).

Operation Of Law

Legal changes that occur automatically by application of law, without requiring action by any party.

War Breaks

Sudden onset of warfare or hostilities between nations or groups.

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Government-imposed restrictions on travel to or from specific countries or regions, often implemented for reasons related to public health, safety, or national security.