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Given That Dividends on a Share Are Expected to Remain

Question 29

Multiple Choice

Given that dividends on a share are expected to remain indefinitely at $0.50 p.a.and that the required rate of return for the level of risk on such a share is 10% and the interest rate is 6%,the correct price for this share is:


A) $8.33.
B) $5.
C) $3.
D) none of the options given.

Correct Answer:

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