Expected Return a Company's Current Stock Price Is $65

question 109

Multiple Choice

Expected Return A company's current stock price is $65.40 and it is likely to pay a $2.25 dividend next year.Since analysts estimate the company will have an 11.25 percent growth rate,what is its expected return?

• A)3.44 percent
• B)3.61 percent
• C)11.25 percent
• D)14.69 percent

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Definitions:

Metacognition Skills

The ability to think about one's own thought processes, including awareness and control over learning strategies and cognitive functions.

Learning Disabilities

Neurologically-based processing problems that can interfere with learning basic skills such as reading, writing, or math, and can also affect higher-level skills such as organization, time planning, and abstract reasoning.

Attention Deficit Disorder (ADD)

A neurodevelopmental disorder characterized by difficulties with focus, impulsivity, and attention.

Learning Disability

A neurological disorder that affects a person's ability to read, write, spell, or do math, despite having average or above-average intelligence.