The Busby Corporation Had a Share Price at the Start

question 45

Multiple Choice

The Busby Corporation had a share price at the start of the year of $26.20,paid a dividend of $0.56 at the end of the year,and had a share price of $29.00 at the end of the year.Which of the following is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this period?

• A)5%
• B)7%
• C)9%
• D)13%

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Definitions:

Barrier-To-Entry Effect

Factors that prevent or hinder new competitors from easily entering an industry or area of business.

Preference Consistency Effect

A phenomenon where individuals show a tendency to remain consistent with their previously stated preferences and choices over time.

Social Threat

Social threat refers to the perceived or real risk of harm to one's social status, acceptance within a group, or personal relationships.

Physical Threat

Any potential cause of physical harm or damage to an individual's bodily integrity, security, or health.