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What Should Be the Stock Value One Year from Today

Question 48

Multiple Choice

What should be the stock value one year from today for a stock that currently sells for $35,has a required return of 15%,an expected dividend of $2.80,and a constant dividend growth rate of 7%?


A) $37.45
B) $37.80
C) $40.25
D) $43.05

Correct Answer:

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