A Stock Is Expected to Pay a Dividend of $3

question 101

Multiple Choice

A stock is expected to pay a dividend of $3.00 in one year.To purchase the stock,investors seek a 15% annual return.If the stock is currently trading at $60,what is the implied constant growth rate in dividends for the future?

• A) 5%
• B) 10%
• C) 15%
• D) 20%

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