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A company with a return on equity of 15% and a plowback ratio of 60% would expect a constant growth rate of: O 4% O

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A company with a return on equity of 15% and a plowback ratio of 60% would expect a constant growth rate of: O 4% O 9% O 21% O 25% QUESTION 9 What should be the price for a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate is 8%? O $22.86 O $28.00 0 $42.00 O $43.75 QUESTION 10 If next year's dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the current stock price should be: O $31.25 O $40.00 O $41.67 O $43.33

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