A Particular Stock Pays an Annual Dividend of $2 Per

question 76

Multiple Choice

A particular stock pays an annual dividend of $2 per share and the annual dividend yield is 2.5 percent.The price of a share of this stock is

• A)$2.05.
• B)$5.00.
• C)$80.00
• D)$50.00.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the extent to which a company exceeds its break-even point.

Last Dollar Spent

A concept in consumer choice theory that refers to the allocation of the last unit of currency by a consumer to optimize utility.

q/L

A formula representing the productivity of labor, where 'q' is total output and 'L' is the total quantity of labor.

Average Product

The average product refers to the output per unit of input used, typically calculated by dividing the total output produced by the quantity of inputs.