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How Much Would You Be Prepared to Pay for a Share

Question 27

Multiple Choice

How much would you be prepared to pay for a share in two years' time that pays a 15c dividend each year and is currently priced at $2? Assume the required rate of return is 7.5% p.a.


A) $1.87
B) $2.30
C) $1.70
D) $2

Correct Answer:

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