Refer to the Information Above

question 28

Multiple Choice

Refer to the information above. If Vision did not pay a dividend for the last two years, but declared a dividend this year, how much will they have to declare in order for the common stockholders to receive $.45 per share?

• A) $189,000.
• B) $306,000.
• C) $108,000.
• D) $162,000.

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Definitions:

Tax Shelter

Financial strategies or instruments used to minimize or avoid taxes legally, often through investments in government securities, retirement accounts, or real estate.

Investment Growth

The increase in the value of an investment, accomplished through rising asset prices and reinvestment of dividends or interest.

Efficient Frontier

A concept in modern portfolio theory representing the set of portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Risk Tolerance

The level of fluctuation in the returns on investments that an investor can tolerate.