Chapter 4 The Value of Common Stocks
2. What should be the price for a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate is 8%? A) $22.86 B) $28.00 C) $42.00 D) $43.75 Answer: D Difficulty: Medium Page: 144, 1st paragraph. Po = 3. ................
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