An Issue of Common Stock Currently Sells for $40

question 44

Multiple Choice

An issue of common stock currently sells for $40.00 per share, has an expected dividend to be paid at the end of the year of $2.00 per share, and has an expected growth rate to infinity of 5% per year. The expected rate of return on this security is

• A) 5%.
• B) 10.25%.
• C) 13.11%.
• D) 10%.

Differentiate between stimulus generalization and response generalization.

Recognize the role of natural settings in promoting generalization.

Utilize strategies for teaching relevant behaviors that are likely to be reinforced in natural settings.

Explain the importance and methods of planning for generalization.

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Definitions:

Purchasing Power

The purchasing power of a currency, measured by the quantity of goods or services a single unit can acquire.

Longest Expansion

A period characterized by sustained economic growth and expansion, often measured by GDP growth, without a recession.

World War II

A global conflict that occurred from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase.