Chapter 4 The Value of Common Stocks
C) Dividend yield / expected rate of growth in dividends . D) (Dividend yield) * (expected rate of growth in dividends) Answer: A. Type: Difficult. Page: 65. 13. Mcom Co. is expected to pay a dividend of $4 per share at the end of year one and the dividends are expected to grow at a constant rate of 4% forever. ................
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