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    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
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    What Is the Current Price of a Telecommunication Company's Stock
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What Is the Current Price of a Telecommunication Company's Stock

Question 61

Question 61

Multiple Choice

What is the current price of a telecommunication company's stock if the current dividend is $0.80, the expected constant growth rate in dividends is 5% and the required return is 10%?


A) $16.00
B) $16.80
C) $8.00
D) $8.40

Correct Answer:

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