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XCEL Corporation Paid a Dividend Yesterday for $1

Question 40

Multiple Choice

XCEL Corporation paid a dividend yesterday for $1.50.They expect to pay dividends annually at a constant 6% annual growth rate indefinitely.If the required rate of return on this investment is 12%,what is the current value of this common stock?


A) $1.50
B) $12.50
C) $13.25
D) $25.00
E) $26.50

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