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    Financial Management Theory and Practice Study Set 4
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    Exam 7: Corporate Valuation and Stock Valuation
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    If D<sub>1</sub> = $1
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If D1 = $1

Question 41

Question 41

Multiple Choice

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year?


A) 6.50%
B) 6.83%
C) 7.17%
D) 7.52%
E) 7.90%

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