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Question
If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock's expected dividend yield for the coming year?a. 4.42%
b. 4.66%
c. 4.89%
d. 5.13%
e. 5.39%
Answer
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Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?
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b. False