You expect a stock to pay a dividend of $2 a share in the upcoming year, and you expect that dividends will grow by 12% a year. If the current price of the stock is $50, its expected return is 16%
Indicate whether the statement is true or false
TRUE
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Which of the following is defined as an evaluation of a characteristic of an object or person affected by comparisons with other objects or people ranking higher or lower on the characteristic?
A. elaborative interrogation B. recency effect C. contrast effect D. comparison effect
Outside of, or before, the process of receiving ethical training, what would most employees use to make decisions when an ethical challenge arises?
a. their manager’s advice or instructions b. a printed code of conduct c. their personal moral intuitions d. advice from family or friends
Which retail theory predicts that innovators will start with a low-cost structure and low profit margin requirements?
a. scrambled merchandising b. retail life cycle c. wheel of retailing d. rationalized retailing
Which of the following statements is CORRECT?
A. One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold. B. Long-term bonds have less price risk but more reinvestment risk than short-term bonds. C. If interest rates increase, all bond prices will increase, but the increase will be greater for bonds that have less price risk. D. Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more price risk but less reinvestment risk. E. Long-term bonds have less price risk and also less reinvestment risk than short-term bonds.