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The Common Stock of Grunskies Ltd Currently Sells for $48

Question 58

Multiple Choice

The common stock of Grunskies Ltd currently sells for $48 per share.The firm has a constant dividend growth rate of 6 percent.If the required rate of return is 15 percent,what is the expected dividend yield on the stock?


A) 6.0%.
B) 8.5%.
C) 9.0%.
D) 15.0%.

Correct Answer:

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