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Brickhouse Is Expected to Pay Annual Dividends of $1

Question 78

Multiple Choice

Brickhouse is expected to pay annual dividends of $1.90 and $2.10 over the next two years,respectively.After that,the company expects to pay a constant dividend of $2.30 a share.What is the value of this stock at a required return of 16 percent?


A) $12.44
B) $13.30
C) $13.89
D) $14.08
E) $14.60

Correct Answer:

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