Question
A stock with a required rate of return of 18% has just paid a $4.00 dividend. What is its value if dividends are expected to
A stock with a required rate of return of 18% has just paid a $4.00 dividend. What is its value if dividends are expected to grow at 10% per yr. forever?
- A. $22.22
- B. $40.00
- C. $44.00
- D. $50.00
- E. $55.00
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
