Maple Corporation Is Expected to Pay an Annual Dividend of $0.45

question 88

Multiple Choice

Maple Corporation is expected to pay an annual dividend of $0.45 per share in the coming year,and to trade for $12.50 at the end of the year.If investments with the same risk as Maple's stock have an expected return of 6.95%,what is Maple's dividend yield?

• A)3.7%
• B)3.6%
• C)3.5%
• D)4.0%
• E)3.4%

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Definitions:

Variance

A measure of the dispersion or spread of a set of values, indicating how much the values differ from the mean of the set.

Population

The set of all elements of interest in a particular study.

F Distribution

A probability distribution that arises in the analysis of variance and is used to calculate differences among group means when the groups have different sizes.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of values in the final calculation of a statistic that are free to vary.