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Basic Question 5 of 7
A company's required rate of return is 17.6%. An analyst expects the company to pay $14 in dividends next year. The company's stock is currently trading at $70 and is expected to fall to $68 by the year-end. The alpha of the company is
B. -0.5%.
C. 0.5%.
A. 0.
B. -0.5%.
C. 0.5%.
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Learning Outcome Statements
calculate and interpret the value of a common stock using the dividend discount model (DDM) for single and multiple holding periods;
CFA® 2025 Level II Curriculum, Volume 3, Module 21.