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A Stock Just Paid a Dividend of D0 = $1

Question 17

Multiple Choice

A stock just paid a dividend of D0 = $1.50.The required rate of return is rs = 14.1%,and the constant growth rate is g = 4.0%.What is the current stock price?


A) $19.15
B) $12.97
C) $12.82
D) $18.84
E) $15.45

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