You Can Purchase One Share of Sumter Company Ordinary Shares

question 82

Essay

You can purchase one share of Sumter Company ordinary shares for $80 today.You expect the price of the ordinary shares to increase to $85 per share in one year.The company pays an annual dividend of $3.00 per share.What is your expected rate of return for Sumter shares?

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Definitions:

Exploit

To make use of something (usually resources) in a way that benefits one but may be considered unfair or unethical.

Cognitive Needs

Psychological requirements of a person for thinking, reasoning, and understanding, which drive the pursuit of knowledge and intellectual engagement.

Physiological Needs

The most basic human needs in Abraham Maslow's hierarchy, including air, water, food, shelter, and sleep, necessary for survival.

Safety and Security

The condition of being protected from or not exposed to danger, and the feeling of being safe and not likely to be endangered or harmed.