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Avril Synchronistics Will Pay a Dividend of $1

Question 6

Multiple Choice

Avril Synchronistics will pay a dividend of $1.30 per share this year.It is expected that this dividend will grow by 5% each year in the future.What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 14%?


A) $9.23
B) $9.28
C) $14.44
D) $15.16
E) $16.21

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