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How Much of a Stock's $30 Price Is Reflected in PRESENT

Question 103

Multiple Choice

How much of a stock's $30 price is reflected in PRESENT VALUE OF GROWTH OPPORTUNITIES if it expects to earn $4 per share, has an expected dividend of $2.50, and a required return of 20 percent?


A) $0
B) $6.00
C) $8.00
D) $10.00

Correct Answer:

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