What Is the Required Rate of Return on a Common

question 109

Multiple Choice

What is the required rate of return on a common stock that is expected to pay a $0.75 annual dividend next year if dividends are expected to grow at 2 percent annually and the current stock price is $8.59?

• A) 8.73%
• B) 8.91%
• C) 10.73%
• D) 11.38%

---

Definitions:

Synaptic Pruning

The process of eliminating weaker synaptic connections while strengthening those that are used more frequently, crucial for healthy brain development.

Adolescents

The developmental stage that typically occurs between childhood and adulthood, often marked by physical, psychological, and social changes.

Attempted Suicides

Instances where an individual tries to end their own life but does not result in death.

Completed Suicides

Refers to instances where individuals succeed in taking their own lives, as opposed to attempted suicides where the individual survives.