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DDP Enterprises Currently Does Not Pay a Dividend but Plans

Question 103

Multiple Choice

DDP Enterprises currently does not pay a dividend but plans to makes its first dividend payment of $1 in 3 years,if the expected growth rate is 10% per year once dividends commence,and the appropriate is discount rate is 18%,what is the current stock price today?


A) $ 8.98
B) $ 8.37
C) $ 13.75
D) $ 14.75

Correct Answer:

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