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CK Company Stockholders Expect to Receive a Year-End Dividend of $5

Question 20

Multiple Choice

CK Company stockholders expect to receive a year-end dividend of $5 per share and then be sold for $115 dollars per share. If the required rate of return for the stock is 20%, what is the current value of the stock?


A) $100
B) $122
C) $132
D) $110

Correct Answer:

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