A share of common stock has just paid a dividend of $2.00. If the expected long-run growth

Question:

A share of has just paid a of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require a (n) 11% rate of return, what is the price of the stock?
(Points: 5)$47.50 $49.00 $50.50 $52.00 $53.50

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...