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The market value of a company's shares is $15 each, the estimated dividend this year is $0.384, and the estimated long-term growth rate in dividends is 4 percent. The implied required rate of return on these shares is closest to:


A) 2.7%.
B) 4.0%.
C) 4.7%.
D) 6.7%.

E) None of the above
F) All of the above

Correct Answer

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The market value of preferred stock decreases when market rates decline.

A) True
B) False

Correct Answer

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