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A Share of Ordinary Shares Just Paid a Dividend of $3.25

Question 32

Multiple Choice

A share of ordinary shares just paid a dividend of $3.25 per share.The expected long-run growth rate for this shares is 18%.If investors require a rate of return of 24%, what should the price of the shares be?


A) $57.51
B) $62.25
C) $71.86
D) $63.92

Correct Answer:

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