If Expected Dividends Grow at 8% and the Appropriate Discount

question 35

Multiple Choice

If expected dividends grow at 8% and the appropriate discount rate is 11%,what is the value of a share with an expected dividend of $2.50?

• A) $22.73
• B) $31.25
• C) $13.16
• D) $83.33

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The State Children's Health Insurance Program, which provides health coverage to uninsured children in families with incomes that are modest but too high to qualify for Medicaid.

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