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    Exam 10: Equity Markets
  5. Question
    A Stock Which Is Expected to Pay a $4 Dividend
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A Stock Which Is Expected to Pay a $4 Dividend

Question 42

Question 42

True/False

A stock which is expected to pay a $4 dividend next year, growing constantly at 6%, and is priced to yield a required return of 18% must be selling for $33.33.

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