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Tangshan China's Stock Is Currently Selling for $160

Question 5

Multiple Choice

Tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. Assuming Tangshan China's most recent dividend was $5.50, what is the required rate of return on Tangshan's stock?


A) 7.3%
B) 8.6%
C) 9.5%
D) 10.6%

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