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    Fundamentals of Financial Management Study Set 1
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    Exam 9: Stocks and Their Valuation
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    If D<sub>1</sub> = $1
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If D1 = $1

Question 21

Question 21

Multiple Choice

If D1 = $1.25,g (which is constant) = 5.5%,and P0 = $40,then what is the stock's expected total return for the coming year?


A) 8.80%
B) 10.09%
C) 6.47%
D) 10.35%
E) 8.63%

Correct Answer:

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