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Most of These Problems Are Straightforward and Only Moderately Difficult

Question 41

Multiple Choice

Most of these problems are straightforward and only moderately difficult. However, a few of the later ones are relatively difficult and should be used primarily on take-home exams for students with some experience with Excel. Problems with * in the topic line are nonalgorithmic.
-A stock just paid a dividend of D0 = $1.50. The r equired rate of return
Is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?


A) $23.11
B) $23.70
C) $24.31
D) $24.93
E) $25.57

Correct Answer:

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