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A share of common stock has a current price of$82.50 and is expected to grow at a constant rate of 10 percent. If you require

A share of common stock has a current price of$82.50 and is expected to grow at a constant rate of 10 percent. If you require a14% rate ofreturn, what is the current dividend of thisstock?

A.

$4.29

B.

$3.00

C.

$6.13

D.

$3.30

E.

$4.75

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Question

A share of common stock has a current price of$82.50 and is expected to grow at a constant rate of 10 percent. If you require

A share of common stock has a current price of$82.50 and is expected to grow at a constant rate of 10 percent. If you require a14% rate ofreturn, what is the current dividend of thisstock? A. $4.29 B. $3.00 C. $6.13 D. $3.30 E. $4.75

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

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Step: 3

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Recommended Textbook for

The Changing Geography Of Banking And Finance

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A share of common stock has a current price of$82.50 and is expected to grow at a constant rate of 10 percent. If you require a14% rate ofreturn, what is the current dividend of thisstock?

A.

$4.29

B.

$3.00

C.

$6.13

D.

$3.30

E.

$4.75