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Bet'R Bilt Bikes Just Announced That Its Annual Dividend for This

Question 78

Multiple Choice

Bet'R Bilt Bikes just announced that its annual dividend for this coming year will be €2.42 a share and that all future dividends are expected to increase by 2.5% annually.What is the market rate of return if this equity is currently selling for €22 a share?


A) 9.5%
B) 11.0%
C) 12.5%
D) 13.5%
E) 15.0%

Correct Answer:

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