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    Exam 8: The Valuation and Characteristics of Stock
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    Horizon Power Is Expected to Grow at a Constant Rate
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Horizon Power Is Expected to Grow at a Constant Rate

Question 165

Question 165

Multiple Choice

Horizon Power is expected to grow at a constant rate of 5% forever. The stock recently paid a $2.10 dividend per share.   What should Horizon sell for if similar stocks are returning 9%?


A) ​$55.13
B) ​$52.50
C) ​$23.33
D) ​$44.10

Correct Answer:

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