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The Last Dividend Paid by New Technologies Was an Annual

Question 71

Multiple Choice

The last dividend paid by New Technologies was an annual dividend of $1.40 a share.Dividends for the next 3 years will be increased at an annual rate of 8 percent.After that,dividends are expected to increase by 3 percent each year.The discount rate is 16 percent.What is the current value of this stock?


A) $10.40
B) $12.60
C) $13.33
D) $14.10
E) $15.55

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