Question
A firm just paid $2.00 on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now
A firm just paid $2.00 on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now to infinity. If the required rate of return for this stock is 9%, then the value of the stock is
(A). $54.50
(B). $40.00
. $50.00
(D). $52.50
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
