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Bondi Company Is Expected to Pay a Quarterly Dividend of $0.45

Question 5

Multiple Choice

Bondi Company is expected to pay a quarterly dividend of $0.45 for the next five years.If the current price of Bondi stock is $17.62,and Bondi's equity cost of capital is 12% per year,what price would you expect Bondi's stock to sell for at the end of the five years?


A) $26.62
B) $17.62
C) $17.92
D) $19.11
E) $28.19

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