Question
. A company plans to pay an annual dividend of $.30 a share for two years commencing two years from today. After that time, a
. A company plans to pay an annual dividend of $.30 a share for two years commencing two years from today. After that time, a constant $1 a share annual dividend is planned indefinitely. Given a required return of 14 percent, what is the current value of this stock?
A.$4.82
B.$5.25
C.
$5.39
D.
$5.46
E.$5.58
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
IFRS edition volume 2
978-0470613474, 470613475, 978-0470616314
