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MAB Ltd Has Just Announced Its Latest Dividend at $0 $12.00 \$ 12.00

Question 2

Multiple Choice

MAB Ltd has just announced its latest dividend at $0.60 per share.If MAB has a constant expected growth rate of 5% and a cost of capital of 7%,which of the following is the best estimate of the value of MAB Ltd's shares?


A) $12.00 \$ 12.00
B) $12.60 \$ 12.60
C) $30.00 \$ 30.00
D) $31.50 \$ 31.50

Correct Answer:

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