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What Is the Expected Price for the Stock of a Company

Question 16

Multiple Choice

What is the expected price for the stock of a company that just paid a dividend of $3.00? The company has a dividend payout ratio of 50 percent,discount rate of 25 percent,and a P/E of 10.


A) $60.00
B) $30.00
C) $12.00
D) $45.00
E) $22.50

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