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Which of the Following Statements Is Correct About a Stock

Question 108

Multiple Choice

Which of the following statements is correct about a stock currently selling for $50 per share that has a 16 percent expected return and a 10 percent expected capital appreciation?


A) its expected dividend exceeds the actual dividend
B) its expected return will exceed the actual return
C) it is expected to pay $3 in annual dividends
D) it is expected to pay $8 in annual dividends

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