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What Is the Value of the Expected Dividend Per Share

Question 120

Multiple Choice

What is the value of the expected dividend per share for a stock that has a required return of 16 percent, a price of $45, and a constant growth rate of 10 percent?


A) $2.70
B) $3.60
C) $4.50
D) $7.20 $45 = DIV./(.16 - .10)
$45 x .06 = DIV.

Correct Answer:

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