The Vinyard Recently Paid a $2

question 77

Multiple Choice

The Vinyard recently paid a $2.38 annual dividend on its common stock.This dividend increases at 1.75 percent per year and currently sells for $40.15 a share.What is the rate of return?

• A)9.62%
• B)9.53%
• C)8.50%
• D)7.78%
• E)11.28%

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Definitions:

Trade Balance

The difference in value between a country's imports and exports over a certain period, indicating the relative strength of its economy.

Net Capital Outflow

The sum representing a country's outbound investments minus its inbound investments from abroad over a specific period.

Investment

The allocation of resources, such as capital or time, in expectation of future benefit or profit.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in a given period, reflecting the international flow of capital.