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Assume That the Relationship Between a Company's Stock Price (Y)

Question 10

Multiple Choice

Assume that the relationship between a company's stock price (y) and dividends paid per share (x) is linear. If the slope of the equation is 0.50 and the intercept is 30, what would be the expected stock price if the dividend paid was 3?


A) 33
B) 30.50
C) 31.5
D) 30

Correct Answer:

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