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A Stock Has a Current Dividend of $0

question 50

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A stock has a current dividend of $0.32 with a growth rate of 8% annually. Assuming a 10% annual discount rate, what should the price of the stock be one year from today?


Definitions:

Linear Graphing

A method for representing data or equations that result in a straight line when plotted on a graph.

Linear Graphing

A method of representing data or equations where the graph forms a straight line.

Temperature Conversion

The process of changing the value of a temperature from one unit to another, such as Celsius to Fahrenheit.

Linear Equation

An equation in which the variable is raised only to the first power.

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