Use the Following Information to Answer the Question(s)below

question 48

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metals has a current stock price of $30 share,is expected to pay a dividend of $1.20 in one year,and its expected price right after paying that dividend is $33.
-Rearden's expected capital gains yield is closest to:

• A)4.0%.
• B)6.4%.
• C)8.2%.
• D)10.0%.

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Definitions:

Investing Activities

Transactions and events that involve the purchase and sale of long-term assets and other investments not generally considered cash equivalents.

Capital to Purchase Fixed Assets

Financial resources allocated for the purchase of long-term physical assets that a company uses in its operations.

Cash Flow Statement

A financial document providing comprehensive detail about a company's cash inflows and outflows over a specified period.

Noncash Asset

Assets owned by a business not in the form of cash but may be converted into cash within a year, such as inventory and property.