Question
A company paid dividends of 12 cents per share this year. For the next five years, the company expects to increase their dividend by 20%
A company paid dividends of 12 cents per share this year. For the next five years, the company expects to increase their dividend by 20% per year. After that, they expect dividends to grow at 4% per year. If interest rates are 9%, what is the price of this stock?
$8.09
$0.98
$4.84
$4.59
A company is expected to pay a dividend of $3 next year, $2 one year after then, then $1 one year after that. Then, the company expects to increase dividends again, increasing dividends by 10% per year. If the interest rate is 12%, what is the price of this stock?
$57.37
$55.00
$44.13
$83.33
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