3. Dividend Discount Model (LO1, CFA4) A common stock pays an annual dividend per share of $2.10....

Question:

3. Dividend Discount Model (LO1, CFA4) A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7 percent and the risk premium for this stock is 4 percent. If the annual dividend is expected to remain at $2.10, the value of the stock is closest to:

a. $19.09

b. $30.00

c. $52.50

d. $70.00

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

Question Posted: