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  2. Topic
    Business
  3. Study Set
    Economics of Money Banking
  4. Exam
    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
  5. Question
    Using the Gordon Growth Model,if D₁ Is
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Using the Gordon Growth Model,if D₁ Is

Question 12

Question 12

Multiple Choice

Using the Gordon growth model,if D₁ is $.50,kₑ is 7%,and g is 5%,then the present value of the stock is


A) $2.50.
B) $25.
C) $50.
D) $46.73.

Correct Answer:

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