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A Stock Is Expected to Pay a Dividend of $25

Question 74

Multiple Choice

A stock is expected to pay a dividend of $25, $35, and $45 each year for the next three years, respectively. If you require a return of 12 percent, how much should you pay for the stock?


A) $85.46
B) $105.00
C) $92.52
D) $82.25
E) $87.18

Correct Answer:

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