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What Is the Expected, Constant Growth Rate of Dividends for a Stock

Question 94

Multiple Choice

What is the expected, constant growth rate of dividends for a stock with a current price of $100, expected dividend payment of $10 per share, and a required return of 16 percent?


A) 6.00 percent
B) 6.25 percent
C) 8.00 percent
D) 10.00 percent

Correct Answer:

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