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For a Particular Share the Dividend to Be Paid in the First

Question 35

Multiple Choice

For a particular share the dividend to be paid in the first year is 50p, the current price is 400p, and the rate at which the dividend stream is expected to grow is 2 per cent. What is the expected rate of return on the shares?


A) 16%
B) 8.2%
C) 12.2%
D) 14.5%

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