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Blue Water Tours Just Paid an Annual Dividend of $0

Question 43

Multiple Choice

Blue Water Tours just paid an annual dividend of $0.80 a share.The firm has a policy of increasing the dividend by 3.5 percent annually.What is the current value of this stock at a discount rate of 11.5 percent?


A) $9.52
B) $9.78
C) $9.91
D) $10.02
E) $10.35

Correct Answer:

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