Nielson Motors Has a Share Price of $25 Today

question 60

Multiple Choice

Nielson Motors has a share price of $25 today.If Nielson Motors is expected to pay a dividend of $0.75 this year,and its stock price is expected to grow to $26.75 at the end of the year,then Nielson's dividend yield and equity cost of capital are:

• A)3.0% and 7.0% respectively.
• B)3.0% and 10.0% respectively.
• C)4.0% and 6.0% respectively.
• D)4.0% and 10.0% respectively.

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Definitions:

NHL

Stands for National Hockey League, a professional ice hockey league in North America, comprising teams from both the United States and Canada.

High-involvement Purchases

Purchases that require significant thought and research from the consumer due to their complexity or high cost.

Greater Risk

Increased chance of encountering a negative event, loss, or threat, often considered in decision-making processes.

Forethought

The thoughtful consideration and planning of actions in advance, often to achieve a desired outcome or avoid negative consequences.