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A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 2
The stock of Hasbro Corporation (HAS) is selling for $44.50 and pays a dividend of $1.00 a share. What is its dividend yield, rounded to the nearest hundredth of a percent?
A. 1.00%
B. 2.25%
C. 4.45%
D. none of the above
Answer: B
Explanation:
Explanation/Reference:
Explanation: If Hasbro is selling for $44.50 and pays a dividend of $1.00 a share, its dividend yield is
2.25%. The dividend yield is the dividend divided by the market price: $1.00/$44.50 = 2.25%.
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B. NPV assumes reinvestment at the prevailing rate.
C. NPV assumes reinvestment at the cost of capital.
D. NPV assumes reinvestment at the NPV rate.
Answer: C
Explanation:
Net present value (NPV) assumes reinvestment is made at the cost of capital.
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