You have 602.42 today. You want to accumulate 1,320 by investing your money. You have identified an investment that will generate a return of 4 per annum. How long will you have to invest (in years) in order to accumulate your desired total?
A) 20 years
B) 17 years
C) 19 years
D) 21 years
E) 22 years
Question 2
Stock dividends
A) decrease stock prices because no cash goes to shareholders but companies pay transactions
costs.
B) may increase stock prices if the dividend is used to maintain on optimal trading range for the
common stock.
C) may increase stock prices if investors perceive the dividend as containing favorable
information about the firm's future prospects.
D) Both B and C are true.
Happened to me today.
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