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A Firm Is Expected to Pay a $4

Question 34

Multiple Choice

A firm is expected to pay a $4.00 dividend per share. The stock is selling in the market place for $55.00 per share. If investors are demanding 12% on this stock, what is this stock's growth rate?


A) 4.73%
B) 7.25%
C) 5.91%
D) 6.14%

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