A Share of Common Stock Has Just Paid a Dividend

question 24

Multiple Choice

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock?

• A) $57.50
• B) $62.25
• C) $71.86
• D) $64.00
• E) $44.92

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Definitions:

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