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A Certain Stock Is Expected to Pay Dividends of $12

Question 72

Multiple Choice

A certain stock is expected to pay dividends of $12, $19, $15, and $21 for the next four years. If the required return on the stock is 14 percent, what is the stock price?


A) $47.70
B) $67.00
C) $45.67
D) $49.88
E) $46.67

Correct Answer:

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