Expected Return Home Depot (HD)recently Paid a $0

question 79

Multiple Choice

Expected Return Home Depot (HD) recently paid a $0.90 dividend.The dividend is expected to grow at a 17 percent rate.At the current stock price of $33.08,what is the return shareholders are expecting?

• A)2.70 percent
• B)17.03 percent
• C)17.18 percent
• D)20.18 percent

---

Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.

Short Run

A period of time during which at least one of a firm's inputs is fixed, affecting the firm's capacity to adjust to demand changes.

Short Run

The short run is a period in economics where at least one factor of production is fixed, limiting the adjustments a firm can make to its inputs.