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If the Dividends to Be Paid on a Common Stock

Question 119

Multiple Choice

If the dividends to be paid on a common stock issue are $3.50 per share, the price of the stock is $50, and the growth rate is 6%, calculate the cost of common stock.


A) 4.6%
B) 13%
C) 0.13%
D) 10%

Correct Answer:

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