Given That the Cost of Common Stock Is 9 Percent,dividends

question 46

Multiple Choice

Given that the cost of common stock is 9 percent,dividends are $0.75 per share and the price of the stock is $12.50 per share,what is the annual growth rate of dividends?

• A)2 percent
• B)4 percent
• C)3 percent
• D)5 percent

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Definitions:

Mortality

The state of being subject to death; often used statistically to refer to the rate of death in a population.

Median Age

The age that divides a population into two numerically equal groups, half of the people being older than this age and half younger.

Canadian

Pertaining to Canada or its people, culture, or characteristics.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society.