Question
A stock just paid a dividend of $2.50 (D 0 = $2.50). The required rate of return is 4% (R = 4%), and the constant
A stock just paid a dividend of $2.50 (D0 = $2.50). The required rate of return is 4% (R = 4%), and the constant growth rate is 2.0% (g = 2.0%). What is the current stock price?
| $41.67 | ||
| $63.75 | ||
| $62.50 | ||
| $127.50 | ||
| $125.00 |
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A Fast And Frugal Finance
Authors: William P. Forbes, Aloysius Igboekwu, Shabnam Mousavi
1st Edition
0128124954, 978-0128124956
