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Using the Gordon Growth Formula, If D₁ Is $1

Question 6

Multiple Choice

Using the Gordon growth formula, if D₁ is $1.00, kₑ is 10 percent or 0.10, and g is 5 percent or 0.05, then the current stock price is ________.

A) $10
B) $20
C) $30
D) $40

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