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Village East Expects to Pay an Annual Dividend of $1

Question 67

Multiple Choice

Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years.After that, the company plans to increase the dividend by 3.4 percent annually.What is this stock's current value at a discount rate of 13.7 percent?


A) $14.09
B) $17.28
C) $15.15
D) $16.08
E) $18.18

Correct Answer:

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