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Martin Industries Pays a Constant $2

Question 328

Multiple Choice

Martin Industries pays a constant $2.50 a share annual dividend. The market price of this stock will:


A) Be greater five years from now than it is today provided that the market rate of return remains constant.
B) Remain constant even as the market rate of return varies.
C) Increase when the market rate of return increases.
D) Decrease if the required return increases.
E) Remain constant as long as the dividend remains constant.

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