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A Firm's Stock Is Selling at $95

question 33

Multiple Choice

A firm's stock is selling at $95.00 per share. Its growth rate is 10 percent and investors demand 15 percent on this stock. What is the firm's expected dividend?


Definitions:

Intrinsic Value

The inherent or actual value of an asset, investment, or company, based on underlying perception of its true value including all aspects of the business.

Annual

Refers to something occurring once every year.

Par Value

The face value or nominal value of a bond or stock, which is the amount paid out at maturity or the value on which dividend payments are calculated.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and principal repayment.

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