You Expect a Share of EconNews

question 147

Multiple Choice

You expect a share of EconNews.com to sell for $65 a year from now and to pay a $2 dividend per share in one year.What should you pay (rounded to the nearest dollar) for the stock today if you require a 4% return?

• A) $60.
• B) $62.
• C) $64.
• D) $67.
• E) $70.

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Definitions:

Intensity

The degree of strength, force, or concentration of something, often used in contexts of light, sound, or emotions.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the inherent pleasure and satisfaction derived from the activity itself.

Primary Drives

Basic internal motivating forces in psychology, such as hunger and thirst, which drive behavior for survival.