Multiple Choice
Fred Flintlock wants to earn a total of 10% on his investments.He recently purchased shares of ABC equity at a price of €20.The share pays a €1 a year dividend.The price of ABC shares need to
_____ if Fred is to achieve his 10% rate of return.
A) remain constant
B) decrease by 5%
C) increase by 5%
D) increase by 10%
E) increase by 15%
Correct Answer:
Verified
Correct Answer:
Verified
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