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Marble Corporation's ROE Is 17

Question 13

Multiple Choice

Marble Corporation's ROE is 17%.Their dividend payout ratio is 20%.The last dividend,just paid,was $2.58.If dividends are expected to grow by the company's sustainable growth rate indefinitely,what is the current value of Marble ordinary shares if its required return is 18%?


A) $14.33
B) $18.27
C) $47.67
D) $66.61

Correct Answer:

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