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Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Question
General Accounting
![A stock just paid a dividend of $1.50. The required
rate of return is 8.5%, and the constant growth rate
is 4%.
What is the current stock price?
a. $36.11
b. $35.15
c. $35.63
d. $34.67
e. $34.19](https://content.bartleby.com/qna-images/question/725526d1-56a4-48f9-9f9e-72338c95b5ba/ed761f29-bddc-41c7-86b2-d6d528a4c278/u4x1b4s_thumbnail.jpeg)
Transcribed Image Text:A stock just paid a dividend of $1.50. The required
rate of return is 8.5%, and the constant growth rate
is 4%.
What is the current stock price?
a. $36.11
b. $35.15
c. $35.63
d. $34.67
e. $34.19
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