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Zimmer's Common Stock Sells for $37 and Its Dividend Is

Question 84

Multiple Choice
Zimmer's common stock sells for $37 and its dividend is expected to grow at a rate of 8 percent annually. What is the expected dividend (D<sub>1</sub>) given that an investor requires a return of 16 percent?

Zimmer's common stock sells for $37 and its dividend is expected to grow at a rate of 8 percent annually. What is the expected dividend (D1) given that an investor requires a return of 16 percent?


A) $2.74
B) $3.20
C) $5.92
D) $2.96

Correct Answer:

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