Question
A stock just paid a dividend of D = $1.50. The required rate of return is r = 10.2%, and the constant growth rate is
A stock just paid a dividend of D
= $1.50. The required rate of return is r
= 10.2%, and the constant growth rate is g = 4.0%. What is the current stock price?
| a. | $20.88 | |
| b. | $18.87 | |
| c. | $23.65 | |
| d. | $25.16 | |
| e. | $27.93 |
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
