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Flash Freeze Frozen Foods Is Expected to Pay Annual Dividends

Question 77

Multiple Choice

Flash Freeze Frozen Foods is expected to pay annual dividends of $1.34 and $ 1.45 at the end of the next two years, respectively.After that, the company expects to pay a constant dividend of $1.50 a share.What is the value of this stock at a required return of 15.1 percent?


A) $7.77
B) $10.25
C) $9.76
D) $12.78
E) $9.93

Correct Answer:

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