The Triangle Store Pays a Constant Dividend

question 49

Multiple Choice

The Triangle Store pays a constant dividend. Last year, the dividend yield was 5.4 percent when the stock was selling for $18 a share. What must the stock price be today if the market currently requires a 3.8 percent dividend yield on this stock?

• A) $25.58
• B) $14.76
• C) $13.89
• D) $23.16
• E) $27.09

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