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Dille IncPays No Dividend at the Present Time

Question 45

Multiple Choice

Dille Inc.pays no dividend at the present time.In Years 2 and 3,the firm will pay annual dividends of $4 a share.After that,it will pay a constant $2 a share dividend indefinitely.What is this stock worth at a required return of 17 percent?


A) $12.29
B) $11.81
C) $12.77
D) $12.50
E) $11.07

Correct Answer:

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