Ashbury Inc

question 91

Multiple Choice

Ashbury Inc.is expected to pay an annual dividend of $1.50 per share in the coming year,and to trade for $36.25 at the end of the year.If investments with the same risk as Ashbury's stock have an expected return of 8.75%,what is Ashbury's capital gain rate?

• A)4.7%
• B)4.1%
• C)4.3%
• D)4.4%
• E)4.2%

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Definitions:

Monopolistic Distributor

An intermediary that possesses the exclusive power to distribute a product or service within a particular market, influencing prices and availability.

Marginal Cost

The investment required to manufacture an extra unit of a good or service.

Mineral Water

Water that contains minerals or other dissolved substances that alter its taste or give it therapeutic value, usually obtained from wells or springs.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.