Question
ABC Corp just paid a dividend of $ 2.75 per share. The future dividends are expected to grow at a constant rate of 6.5% forever.
ABC Corp just paid a dividend of $ 2.75 per share. The future dividends are expected to grow at a constant rate of 6.5% forever. If the investors' require a return of 15%, the price per share at the end of 5yearsshouldbe:
a.$47.21
b.$34.46
c.$ 44.32
d.$ 55.29
e.$73.22
f.$13.62
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Mathematical Interest Theory
Authors: Leslie Jane, James Daniel, Federer Vaaler
3rd Edition
147046568X, 978-1470465681
