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What Should an Investor Pay for Shares in Which the Rate

Question 6

Multiple Choice

What should an investor pay for shares in which the rate of return for the risk class is 10 per cent, a dividend of 44p will be paid after 1 year, and the share price after 1 year is expected to be 220p?


A) 270p
B) 224p
C) 214p
D) 240p

Correct Answer:

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