The Dividend Yield on Alpha's Common Stock Is 5

question 10

Multiple Choice

The dividend yield on Alpha's common stock is 5.2 percent.The company just paid a $2.10 dividend.The rumour is that the dividend will be $2.30 next year.The dividend growth rate is expected to remain constant at the current level.What is the required rate of return on Alpha's stock?

• A)14.72 percent
• B)12.31 percent
• C)18.29 percent
• D)20.01 percent
• E)24.21 percent

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Definitions:

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Motor Neurons

Nerve cells responsible for conveying signals from the brain or spinal cord to muscles, causing them to contract and enable movement.

Nervous System

A complex framework of neurons and nerve fibers responsible for conveying signals throughout the body, integrating its movements and sensory inputs.

Inherited Traits

Characteristics or attributes passed down from parents to offspring through genes.