A Stock Pays a Constant Annual Dividend and Sells for $31.11

question 62

Multiple Choice

A stock pays a constant annual dividend and sells for $31.11 a share. If the dividend yield of this stock is 9%,what is the dividend amount?

• A) $1.40
• B) $1.80
• C) $2.20
• D) $2.40
• E) $2.80

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Definitions:

Statutory Insiders

Certain large stockholders, executive officers, and directors who are deemed insiders by the Securities Exchange Act of 1934.

Securities Exchange Act

A U.S. law governing the trading of securities, such as stocks and bonds, to protect investors against fraud.

Blue-Sky Laws

State laws in the United States designed to protect investors from securities fraud by regulating the offering and sale of securities to the public.

Interstate Securities

Securities transactions or offerings that occur across state lines, subject to federal laws and regulations.