Yummy Bakery just paid an annual dividend of $3.40 a share and is expected to increase that amount by 2.2 percent per year. If you are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 14.8 percent at the time of your purchase

$28.18

Explanation:

Use dividend discount model to answer this question.

Current dividend ; D0 = 3.40

growth rate; g = 2.2% or 0.022 as a decimal

D1 = D0(1+g)

D1 = 3.40(1.022)

D1 = 3.4748

Since you are buying the stock next year, calculate dividend at year 2 which you would use in the formula to find next year's price (P1) ;

D2 = D1(1+g)

D2 = 3.4748 (1.022)

D2 = 3.5512

Next year's price; P1 = D2 / (r-g)

P1 = 3.5512 / (0.148 - 0.022)

P1 = 28.1841

Therefore, you will pay $28.18

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.