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Using the One-Period Valuation Model, Assuming a Year-End Dividend of $1.00

Question 17

Multiple Choice

Using the one-period valuation model, assuming a year-end dividend of $1.00, an expected sales price of $100, and a required rate of return of 5 percent, the current price of the stock would be ________.


A) $110.00
B) $101.00
C) $100.00
D) $96.19

Correct Answer:

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