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Now or Later Recently Paid €1

Question 97

Multiple Choice

Now or Later recently paid €1.10 as an annual dividend.Future dividends are projected at €1.14,€1.18,€1.22,and €1.25 over the next four years,respectively.After that,the dividend is expected to increase by 2% annually.What is one share of this equity worth to you if you require an 8% rate of return on similar investments?


A) €15.62
B) €19.57
C) €21.21
D) €23.33
E) €25.98

Correct Answer:

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