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Prairies Oil Sands Inc

Question 41

Multiple Choice

Prairies Oil Sands Inc.is expected to pay a dividend of $1 in one year.If the dividend growth rate is 2.0% indefinitely and the required rate of return is 10.0%, what should the share be sold for five years from now?


A) $13.53
B) $13.80
C) $14.08
D) $14.62

Correct Answer:

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