An Issue of Common Stock Has Just Paid a Dividend

question 68

Multiple Choice

An issue of common stock has just paid a dividend of $2.00. Its growth rate is equal to 4%. If the required rate of return is 7%, what is its current price?

• A) $19.04
• B) $80.00
• C) $69.33
• D) None of these

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Definitions:

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