An Issue of Ordinary Shares Currently Sells for $40

question 110

Multiple Choice

An issue of ordinary shares currently sells for $40.00 per share,has an expected dividend to be paid at the end of the year of $2.00 per share,and has an expected growth rate to infinity of 5% per year.The expected rate of return on this security is

• A)5%.
• B)10.25%.
• C)13.11%.
• D)10%.

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Definitions:

Charlie Chaplin

An iconic British comedian, filmmaker, and actor, known for his silent film era character "The Tramp" and for co-founding United Artists.

Climactic Scene

A pivotal moment in a narrative, often towards the end, where the peak of the story's action or conflict occurs, leading to resolution.

Charlie Chaplin

A pioneering figure in the film industry, known for his contributions as an actor, director, and composer during the silent film era, famous for his character "The Tramp."

Anti-Semitism

Hostility, prejudice, or discrimination against Jews as a religious, ethnic, or racial group.