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McIntyre's Moats, Inc

Question 60

Multiple Choice

McIntyre's Moats, Inc. currently pays no dividends, but the firm will begin paying dividends in three years. The first dividend will be $2.50 and dividends are expected to grow at 2% thereafter. Given a current market price of $55.62, what is the required return on the stock?


A) 4.6%
B) 5.5%
C) 6.6%
D) 7.6%
E) 8.5%

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