Question
14. A stock has a steady 5% growth rate in dividends. The required rate of return for stock of this risk class is 15%. The
14. A stock has a steady 5% growth rate in dividends. The required rate of return for stock of this risk class is 15%. The stock is expected to pay a $1 dividend this coming year. The expected value of the stock at the end of the fourth year is: *
A. $12.16
B. $14.21
C. $16.32
D. $18.20
E. None of the above
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Corporate Finance Investment And Advisory Applications
Authors: Jesse McDougall, Patrick Boyle
1st Edition
1530116597, 9781530116591
