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A Stock Is Currently Priced at $17

Question 83

Multiple Choice

A stock is currently priced at $17.65 and is expected to pay an annual dividend of $1.50 next year. If the dividends are expected to grow at 4 percent per year forever, what is the required return on the stock?


A) 13.08%
B) 14.01%
C) 16.21%
D) 15.13%
E) 12.50%

Correct Answer:

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