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A Stock Is Expected to Pay a Dividend of $0

Question 36

Multiple Choice

A stock is expected to pay a dividend of $0.75 at the end of the year.The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%.What is the stock's current price?


A) $17.39
B) $17.84
C) $18.29
D) $18.75
E) $19.22

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