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Tangshan China Company's Stock Is Currently Selling for $80

Question 48

Multiple Choice

Tangshan China Company's stock is currently selling for $80.00 per share. The expected dividend one year from now is $4.00 and the required return is 13 percent. What is Tangshan's dividend growth rate assuming that dividends are expected to grow at a constant rate forever?


A) 8%
B) 9%
C) 10%
D) 11%

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