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Suppose a Share Has the Flat Fundamental Value of $3

Question 36

Multiple Choice

Suppose a share has the flat fundamental value of $3.60. The share trades for 15 periods. The market interest rate is 10%. This implies that the per period expected dividend on the share must be:


A) $0.24.
B) $3.60.
C) $0.36.
D) $2.40.

Correct Answer:

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