Question
A stock's last dividend (D 0 ) was $2.00, and earnings and dividends are expected to increase at a constant growth rate of 10%. Your
A stock's last dividend (D0) was $2.00, and earnings and dividends are expected to increase at a constant growth rate of 10%. Your required return on this stock is 20%. What is this stock's current price?
| a. | $20.00 | |
| b. | $20.50 | |
| c. | $22.00 | |
| d. | $23.00 | |
| e. | $25.50 |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
