You Own Shares in the XYZ Company

question 57

Multiple Choice

You own shares in the XYZ company.For the first 10 years that you owned the shares,they paid a dividend of $150 every 6 months (paid at the end of every 6 months) .However due to a downturn in the economy,no dividend has been paid in the past 2 years.If you have reinvested the dividends in a fund earning j₂ = 5%,how much do you have today?

• A)$4229.48
• B)$4224.45
• C)$4126.32
• D)$3831.70

---

Definitions:

Price of Labor

The wages or salary paid to workers for their services, often determined by supply and demand in the labor market.

Least-Cost Rule

A principle suggesting that the most efficient way to achieve a desired level of output is by minimizing the cost of input resources.

Unit Cost

The calculated cost to produce one unit of a product, taking into account all relevant production expenses.

Technological Advance

The progress in technological development that leads to more efficient processes, products, or services.