Shane Purchased a Stock This Morning at a Cost of $11

question 8

Multiple Choice

Shane purchased a stock this morning at a cost of $11 a share. He expects to receive an annual dividend of $.27 a share next year. What will the price of the stock have to be one year from today if Shane is to earn a 15 percent rate of return on this investment?

• A) $12.38
• B) $12.60
• C) $12.88
• D) $13.14
• E) $14.28

---

Definitions:

Leakages

The outflow of economic resources or money from a system, such as savings, taxes, or imports, which can reduce domestic spending.

Reflectiveness

The ability or process of self-examination, exploring one's thoughts, feelings, and reasons behind one's actions.

Control Group

In scientific research, a group of subjects or entities kept under standard conditions to serve as a comparison against a group where experimental variables are altered.

Leakage

In economic terms, refers to the loss of funds through non-productive means, such as untaxed income or unrecorded sales.