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A Stock Is Expected to Pay a $4

Question 63

Multiple Choice

A stock is expected to pay a $4.00 dividend per share. The growth rate is expected to be 5%. If investors demand 10% on this stock, what is the expected price of the stock 10 years from now?


A) $94.68
B) $92.17
C) $130.31
D) $126.93

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