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Mortgage Instruments NV Is Expected to Pay Dividends of €1

Question 7

Multiple Choice

Mortgage Instruments NV is expected to pay dividends of €1.03 next year.The company just paid dividends of €1.This growth rate is expected to continue.How much should be paid for Mortgage instruments share just after the dividend if the appropriate discount rate is 5%.


A) €20.00
B) €21.50
C) €34.75
D) €50.00
E) €51.50

Correct Answer:

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