Stockholders' expected return on a stock priced at $25 per share with zero-growth dividends of $4.00 is:
A) 6.25%.
B) 13.64%.
C) 16.00%.
D) 21.00%.

Name: Stockholders' expected return on a stock priced at $25 per share with zero-growth dividends of $4.00 is: A) 6.25%. B) 13.64%. C) 16.00%. D) 21.00%.
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Question

Quizplus · Accepted Answer

The expected return is calculated as the dividend divided by the stock price. Here, $4.00 / $25 = 0.16 or 16.00%.

Stockholders' Expected Return on a Stock Priced at $25 Per