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The Good Life Offers a Common Stock That Pays an Annual

Question 146

Multiple Choice

The Good Life offers a common stock that pays an annual dividend of $2 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this
Stock if you want to earn a 9% return on your equity investments?


A) $22.22
B) $24.22
C) $26.67
D) $28.57
E) $31.14

Correct Answer:

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