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What Is the Expected Constant-Growth Rate of Dividends for a Stock

Question 7

Multiple Choice

What is the expected constant-growth rate of dividends for a stock with a current price of $87,an expected dividend payment of $5.40 per share,and a required return of 16%?


A) 8.48%
B) 6.25%
C) 9.79%
D) 5.23%

Correct Answer:

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