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Farris Farms Ltd. common stock is expected to pay a dividend of $2.50 at the end of the year. If investors require a 12% return
Farris Farms Ltd. common stock is expected to pay a dividend of $2.50 at the end of the year. If investors require a 12% return to hold the stock, what price should it sell at?
Multiple Choice
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$20.83
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$20.23
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$20.43
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$20.63
Farris Farms Ltd just paid a dividend of $2.00. If investors expect the dividend to grow at 4% per year and they require a 14% rate of return to hold the stock, what price should the stock sell for?
Multiple Choice
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$20.60
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$21.60
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$21.80
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$20.80
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