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Assume Zero-Sum Enterprise Pays an Annual Dividend of $1

Question 60

Multiple Choice

Assume Zero-Sum Enterprise pays an annual dividend of $1.40 per share and that neither earnings nor dividends are expected to grow in the future. What is the value of Zero-Sum's stock to an investor who requires a 14 percent rate of return?


A) $14
B) $10
C) $20
D) $0

Correct Answer:

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