A fiRm's Stock Has a Required Return of 10

question 215

Multiple Choice

A firm's stock has a required return of 10%. The stock's dividend yield is 6%. What dividend did the firm just pay if the current stock price is $40?

• A) $2.18
• B) $2.31
• C) $2.50
• D) $2.87
• E) $3.60

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