Skylona Inc

question 61

Multiple Choice

Skylona Inc.'s rate of return on equity is 12%.It can either pay a dividend of $5.00 today or reinvest the money and pay a dividend of $5.60 at the end of the year.From a shareholder's point of view, the value of the dividend paid now is [blank] and the value of the dividend paid a year from now is [blank].

• A)$5.00; $4.46
• B)$5.00; $5.00
• C)$4.46; $5.00
• D)$5.60; $5.00

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Definitions:

Scheduled

Planned or appointed to occur at a specific time or date; organized in advance according to a timetable or agenda.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, impatience, and a sense of urgency.

Detailed Calendar

An elaborately organized schedule that outlines tasks, events, and activities, typically with specific dates and times.

Reacting With Hostility

Responding to situations or persons with anger, aggression, or opposition.