You Are Considering Buying a Share of Stock in Company

question 28

Multiple Choice

You are considering buying a share of stock in Company ABC.At the end of years 1,2,and 3 the stock will pay you a dividend of $10.In addition,at the end of the third year you expect to sell the share of stock for $200.If the interest rate is 5%,how much is the share of ABC stock worth to you today?

• A)$200
• B)$210
• C)$220
• D)$230

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Definitions:

Mothers Leave

Time off work granted to a mother around the birth or adoption of a child to care for the newborn or newly adopted child, often referred to as maternity leave.

Little Distress

A minimal level of discomfort, worry, or suffering experienced by an individual, typically regarded as manageable without significant intervention.

Difficult Child

Refers to a child who exhibits challenging behaviors or emotional responses that are more intense and less predictable than typical for their developmental stage.

Mixed Temperament

A personality classification that combines elements of multiple temperaments, showing characteristics of more than one basic type.