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Question
Merrell Enterprises' stock has an expected return of 14%. The stock's 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?a. The stock's dividend yield is 8%.
b. The current dividend per share is $4.00.
c. The stock price is expected to be $54 a share one year from now.
d. The stock price is expected to be $57 a share one year from now.
e. The stock's dividend yield is 7%.
Answer
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