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ABC Is Selling for $45

Question 14

Multiple Choice

ABC is selling for $45.60 and is expected to continue its 5.5% growth rate in dividends. Using the Dividend Growth model, what is its expected dividend if its target return to investors is 18%?


A) $2.50
B) $2.96
C) $5.70
D) $8.20
E) $8.66

Correct Answer:

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