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If the Required Return for a Stock Is 14% Annually

Question 75

Multiple Choice

If the required return for a stock is 14% annually, what should the stock price be one year from today assuming the current price is $24.00 and a dividend of $0.24 is paid sometime over the year?


A) $27.36
B) $27.12
C) $21.05
D) $20.81

Correct Answer:

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