A Share of Stock Will Pay a Dividend of $20

question 73

Multiple Choice

A share of stock will pay a dividend of $20 in one year,and will be sold for an expected price of $500 at that time.If the current one-year interest rate is 5%,the current price of the stock will be approximately equal to

• A)$100.
• B)$495.
• C)$500.
• D)$525.
• E) none of the above

Recognize the structure and purpose of financial budgets including cash, sales, and merchandise purchases.

Calculate units to be purchased based on sales forecasts and inventory policies.

Calculate budgeted materials purchases cost.

Understand cash budget preparation and managing minimum cash balances.

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Definitions:

Equilibrium Reaction

A chemical reaction where the rate of the forward reaction equals the rate of the reverse reaction, resulting in no net change in the concentration of reactants and products.

K

The symbol for potassium, a soft, silvery-white metallic element that is essential for living cells and important in many industrial processes.

Equilibrium Reaction

A chemical reaction in which the rates of the forward and reverse reactions are equal, resulting in no net change in the concentrations of the reactants and products.

K

K is the chemical symbol for potassium, an essential dietary mineral and electrolyte necessary for various bodily functions, including nerve transmission and muscle contraction.