Multiple Choice
For a particular share a dividend of 20p will be paid after 1 year, at which time the share is expected to be sold for 250p. If the risk class justifies a rate of return of 20 per cent, how much should an investor pay for the shares today?
A) 240p
B) 250p
C) 225p
D) 275p
Correct Answer:
Verified
Correct Answer:
Verified
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