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What Would You Pay for a Share of ABC Corporation

Question 72

Multiple Choice

What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return on equity investments is 12%, and the stock is expected to be worth $110 one year from now?


A) $95
B) $100
C) $110
D) $115
E) $120

Correct Answer:

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