Exam 6: How to Value Bonds and Stocks
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Angelina's made two announcements concerning its common stock today.First,the company announced that its next annual dividend has been set at $2.16 a share.Secondly,the company announced that all future dividends will increase by 4% annually.What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return?
(Multiple Choice)
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