Question
A share of stock is paying dividends that grow at an annual rate of 3%. The dividend expected at the end of this year (t=1)
A share of stock is paying dividends that grow at an annual rate of 3%. The dividend expected at the end of this year (t=1) is $2.50 per share. If the shareholders want a return of 15% per year on this stock, what is the price of the stock today?
| a. | 20.83 | |
| b. | 20.00 | |
| c. | 100.00 | |
| d. | 50.72 |
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Money Locates You
Authors: Joan Ekobena
1st Edition
1774821257, 978-1774821251
