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can be expressed as: The price of a stock at year ADS/ (Rg. BD *(1 +R). Do *(1 + r) DO/(R+G3) EDG (R) QUESTION 3 Which one of
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Answer #1

As Per Constant Growth Rate Dividend Discount Model Price is Calculated using the following Formula.

P0 = D1/(r-g)

Therefore P5 = D6/(r-g)

Answer E.

3. In the Case of Profits are not available Cumulative Preferred Shareholders receive dividends in the following Years when there is Profit. Dividends not paid are accumulated and Paid in Preference over Common Shareholders.

Answer E

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