Question
ABC corp. has just announced a dividend of $0.80 for this year and $0.845 for the next year. Dividends are expected to grow at a
ABC corp. has just announced a dividend of $0.80 for this year and $0.845 for the next year. Dividends are expected to grow at a constant rate indefinitely. What is the current stock price if the required return is 13.1 percent?
a) $11.30
b) $8.55
c) $9.57
d) $9.35
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
