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    Fundamentals of Corporate Finance Study Set 24
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    Exam 7: Valuing Stocks
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    What Should Be the Price for a Common Stock Paying
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What Should Be the Price for a Common Stock Paying

Question 19

Question 19

Multiple Choice

What should be the price for a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate is 8 percent?


A) $22.86
B) $28.00
C) $42.00
D) $43.75

Correct Answer:

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