A Stock Had a Total Return of 9

question 84

Multiple Choice

A stock had a total return of 9.62 percent last year.The dividend amount was $.70 a share which equated to a dividend yield of 2.39 percent.What is the dividend growth rate?

• A)7.06 percent
• B)4.03 percent
• C)7.23 percent
• D)5.48 percent
• E)2.48 percent

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Definitions:

Deferred Compensation

A portion of an employee's income that is deferred to a later date, typically to take advantage of lower tax rates or to fund retirement plans.

Pension Expense

The cost recognized by an employer for providing retirement benefits to employees during a given period.

Straight-Line Method

A depreciation technique that allocates an equal amount of the cost of an asset minus its salvage value to each accounting period over its useful life.