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A stock just paid a dividend of $5 per share, with its next dividend expected one year from now. You expect the dividend to grow
A stock just paid a dividend of $5 per share, with its next dividend expected one year from now. You expect the dividend to grow at a constant rate of 5% each year. The required rate of return (discount rate) for a stock with this level of risk is 11%. What price would you be willing to pay for this stock if you wanted to buy it today ? A $4.50 $ 45.45 $ 83.33 DI D. $87.50 E. $100.00
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