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A Stock Sells for $14

question 72

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A stock sells for $14.85 a share and has a required return of 14 percent. Dividends are paid annually and increase at a constant 3 percent per year. What is the amount of the last dividend paid?

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Definitions:

Common-size Percent

A technique used in financial analysis where all line items are expressed as a percentage of a common base figure, facilitating comparison between financial periods and companies.

Analysis Amount

The specific value being examined or analyzed in financial or statistical evaluations.

Base Amount

The initial sum of money or reference value from which calculations or comparisons are made.

Net Sales

Net sales are the total revenue from goods or services sold by a company, minus returns, allowances for damaged or missing goods, and discounts.

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