Quiz 1: Fin 819-02

A) 20% . B) 25% . C) 10% . D) 15% . E) None of the above. Answer: B. Response: r = (120+5-100)/100 = 25%. 2. PC Company stockholders expect to receive a year-end dividend of $10 per share and then be sold for $122 dollars per share. If the required rate of return for the stock is 20%, what is the current value of the stock? A) $100 . B) $122 ... ................
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