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Where applicable, and if not specifically addressed in the question, assume interest is compounded annually ( i.e. P/Y = 1 ) , at the end
Where applicable, and if not specifically addressed in the question, assume interest is compounded annually ( i.e. P/Y = 1) , at the end of each year. The only exception will be for the mortgage problem (#34), which will have payments and interest calculated on a monthly basis, at the end of each month.
ABC, Inc. stock will pay a dividend this year of $7.20 per share. Its dividend yield is 8%. At what price should the stock be selling? A. $85.00 B. $90.00 C. $95.00 D. $100.00 E. None of the above
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