A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now after the next dividend has been paid

$86.20

Explanation:

Total return from stock = Current price * expected return

Total return from stock = 80*14%

Total return from stock = $11.20

Dividend already realized = $5

Capital gain = $11.20 - $5

Capital gain = $6.20

End of one year price = Beginning price + capital gain

End of one year price = $80 + $6.20

End of one year price = $86.20

Therefore, at the end of one year price is $86.20

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"