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QUESTION 20 The Retarded Companys dividends are declining at an annual rate of 2 percent. The company just paid a dividend of $4 per share.

QUESTION 20

  1. The Retarded Companys dividends are declining at an annual rate of 2 percent. The company just paid a dividend of $4 per share. You require a 16 percent rate of return. How much will you pay for this stock?

    A.

    $13.85
    B.

    $19.20
    C.

    $17.09
    D.

    $15.33
    E.

    $12.57
    F.

    $21.78

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