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A Company Has Stock Which Costs $41

Question 63

Multiple Choice

A company has stock which costs $41.50 per share and pays a dividend of $2.50 per share this year. The company's cost of equity is 7%. What is the expected annual growth rate of the company's dividends?


A) 0.98%
B) 1.96%
C) 2.94%
D) 3.92%

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