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The Felix Corp

Question 38

Multiple Choice

The Felix Corp.projects to pay a dividend of €.75 next year and then have it grow at 12% for the following 3 years before growing at 8% indefinitely thereafter.The equity has a required return of 10% in the market.The price of the share should be ____.


A) €9.38
B) €17.05
C) €41.67
D) €59.80
E) €62.38

Correct Answer:

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