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IVilaterim #2 Your answer: Question 1 (CHAPTER 8) A company has just paid a $1.5 dividend on each share of its stock yesterday. The company
IVilaterim #2 Your answer: Question 1 (CHAPTER 8) A company has just paid a $1.5 dividend on each share of its stock yesterday. The company managers announced to their investors of their plan to continue growing which would allow the company to pay future dividends that will be increasing at a stable 5% annual rate. The required rate of return for this company is 10%. (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 100.23. Do NOT use "$" in your answer.) If you buy shares of such stock today, the fair market price per share will equal: (a) $27.50 (b) $30.00 (c) $30.75 (d) $31.50 (e) $34.50 If the shares currently sell for $45 each, it means: (a) the shares are currently overpriced by $3.5 (b) the shares are currently overpriced by $2 (c) the shares are currently priced just right (d) the shares are currently underpriced by $2 (e) the shares are currently underpriced by $3.5
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