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    The Economics of Money Banking Study Set 2
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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 Gordon Growth Formula,if D1 Is $2
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Using the Gordon Growth Formula,if D1 Is $2

Question 97

Question 97

Multiple Choice

Using the Gordon growth formula,if D1 is $2.00,ke is 12 percent or 0.12,and g is 10 percent or 0.10,then the current stock price is ________.


A) $20
B) $50
C) $100
D) $150

Correct Answer:

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