Solitron Manufacturing Company Preferred Stock Is Selling for $14

question 18

Multiple Choice

Solitron Manufacturing Company preferred stock is selling for $14.If it has a yearly dividend of $1,what is your expected rate of return if you purchase the stock at its market price (round your answer to the nearest .1%) .

• A)25.0%
• B)14.2%
• C)7.1%
• D)9.3%

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Definitions:

Vroom

Refers to Victor Vroom, known for his work on the Expectancy Theory of motivation, which suggests that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and minimize pain.

Human Motivation

The internal processes that initiate, guide, and maintain goal-oriented behaviors among humans.

Valence

In psychology, the intrinsic attractiveness or aversiveness of an event, object, or situation.

Expectancy

The belief or anticipation that a certain action will lead to a desired outcome, often related to motivation.