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A Particular Common Stock Has an Annual Cash Dividend of $4

Question 37

Multiple Choice

A particular common stock has an annual cash dividend of $4 per share and is predicted to have a market value of $60 per share 5 years from now.Assuming a discount rate of 10%, a fair market price for the stock today is: A) $40.00 B) $52.41 C) $75.16 D) $112.42
A particular common stock has an annual cash dividend of $4 per share and is predicted to have a market value of $60 per share 5 years from now.Assuming a discount rate of 10%, a fair market price for the stock today is:


A) $40.00
B) $52.41
C) $75.16
D) $112.42

Correct Answer:

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