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    Fundamentals of Corporate Finance Study Set 7
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    What Constant-Growth Rate in Dividends Is Expected for a Stock
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What Constant-Growth Rate in Dividends Is Expected for a Stock

Question 104

Question 104

Multiple Choice

What constant-growth rate in dividends is expected for a stock valued at $32.40 if next year's dividend is forecast at $2.20 and the appropriate discount rate is 13.6%?


A) 7.02%
B) 6.59%
C) 6.81%
D) 7.38%

Correct Answer:

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