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1. What should an investor pay for shares for which the expected rate of return for that risk class is 10%, if a dividend of

1. What should an investor pay for shares for which the expected rate of return for that risk class is 10%, if a dividend of 34p will be paid after 1 year, and the share price after 1 year is expected to be 350p?

a) 350p b) 314p c) 370p d) 384p e) 349p

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