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    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
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    Using the One-Period Valuation Model, Assuming a Year-End Dividend of $0.11
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Using the One-Period Valuation Model, Assuming a Year-End Dividend of $0.11

Question 68

Question 68

Multiple Choice

Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10 percent, the current price of the stock would be ________.


A) $110.11
B) $121.12
C) $100.10
D) $100.11

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