Question
A stock pays a constant dividend of $2.5/share every 6 months, and the next dividend will be received today. If the market's required return on
A stock pays a constant dividend of $2.5/share every 6 months, and the next dividend will be received today. If the market's required return on this stock is 11% PER YEAR, what is the market value of the stock? [Express your final answer in dollars and cents (rounded to 2 decimal places)] Market Value Today = $ per share A. 45.45 B. 53.45 C. 23.56 D. 54.23
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CFP Board Financial Planning Competency Handbook
Authors: CFP Board
2nd Edition
1119094968, 978-1119094968
