Nielson Motors Has a Share Price of $25 Today

question 60

Multiple Choice

Nielson Motors has a share price of $25 today.If Nielson Motors is expected to pay a dividend of $0.75 this year,and its stock price is expected to grow to $26.75 at the end of the year,then Nielson's dividend yield and equity cost of capital are:

• A)3.0% and 7.0% respectively.
• B)3.0% and 10.0% respectively.
• C)4.0% and 6.0% respectively.
• D)4.0% and 10.0% respectively.

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Definitions:

Situationist

A perspective in psychology that emphasizes the importance of environmental and situational factors in influencing behavior, often in contrast to trait-based theories.

Mischel's Claims

Assertions by psychologist Walter Mischel that personality can vary significantly according to situational factors.

Personality

The set of emotional, cognitive, and behavioral patterns that are stable over time and across situations, which characterizes an individual and differentiates them from others.

Life Span

A term referring to the maximum duration of life of a species, or more commonly, the length of an individual's life.