A Company Has Stock Which Costs $41

question 63

Multiple Choice

A company has stock which costs $41.50 per share and pays a dividend of $2.50 per share this year. The company's cost of equity is 7%. What is the expected annual growth rate of the company's dividends?

• A) 0.98%
• B) 1.96%
• C) 2.94%
• D) 3.92%

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Definitions:

Selective Pressures

Environmental or societal factors that influence the survivability and reproductive success of organisms, thereby affecting evolutionary change.

Evolved Sex Differences

Refer to the biological and psychological differences between males and females that are believed to have developed through the process of evolution to adapt to specific environmental challenges.

Empirical

Pertaining to or based on observation or experience rather than theory or pure logic.

Investigate

the action of carrying out research or systematic inquiry to discover facts or information about a subject, often involving the collection of evidence.