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Using the One-Period Valuation Model,assuming a Year-End Dividend of $1

Question 45

Multiple Choice

Using the one-period valuation model,assuming a year-end dividend of $1.00,an expected sales price of $100,and a required rate of return of 5%,the current price of the stock would be


A) $110.00.
B) $101.00.
C) $100.00.
D) $96.19.

Correct Answer:

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