Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The expected return on Stock A is 14%. Its dividend is expected to grow at a
constant rate of 8%, and it currently sells for $50 a share. Which of the
following statements is CORRECT?
O Stock A's dividend yield is 8%.
O Stock A's current dividend per share is $4.00.
O Stock A's price is expected to be $57 a share one year from now.
O Stock A's price is expected to be $54 a share one year from now.
O Stock A's dividend yield is 7%.
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Transcribed Image Text:The expected return on Stock A is 14%. Its dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT? O Stock A's dividend yield is 8%. O Stock A's current dividend per share is $4.00. O Stock A's price is expected to be $57 a share one year from now. O Stock A's price is expected to be $54 a share one year from now. O Stock A's dividend yield is 7%.
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