A stock's price is $20 at the beginning of a year. There is a 25 percent chance that the price will be $17 at the end of the year, and a 75 percent chance that the price will be $25 at the end of the year. The stock will pay a dividend of $3 during the year. The expected return on the stock is ____ percent.
A. 10
B. 20
C. 30
D. 40
Answer: C
You might also like to view...
Mobile Power Corp reported the following information for the year ended December 31, 2016. Revenue $ 40,000 Expenses 23,000 Dividends 10,000 Retained earnings at December 31, 2016 175,000 What was the retained earnings balance for Mobile Power at December 31, 2015?
a. $ 165,000 b. $ 168,000 c. $ 182,000 d. $ 192,000
The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time
a. True b. False Indicate whether the statement is true or false
For consumer-product companies that are the heaviest users of advertising and promotion, there has been a significant shift over time away from promotion toward media advertising
Indicate whether the statement is true or false
What are some of the intangible benefits that may be expected from the new system? Discuss their importance and why they are difficult to interpret