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Constant Growth: Ryder Supplies Has Its Share Currently Selling at $63.25

Question 68

Multiple Choice

Constant growth: Ryder Supplies has its share currently selling at $63.25. The company is expected to grow at a constant rate of 7 percent. If the appropriate discount rate is 17 percent, what is the expected dividend, a year from now?


A) $4.43
B) $3.25
C) $10.75
D) $6.33

Correct Answer:

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