Question
ABC Inc. is expected to pay a dividend of $2.25 in the coming year (D 1 = $2.25). The company will increase its dividend payment
ABC Inc. is expected to pay a dividend of $2.25 in the coming year (D1 = $2.25). The company will increase its dividend payment at a growth rate of 4 percent every year indefinitely (g = 4.0%). If the required rate of return on the stock is 6%, what is the current value of the companys stock?
| 1. | $225.00 | |
| 2. | $56.25 | |
| 3. | $112.50 | |
| 4. | $$118.13 | |
| 5. | $37.50 |
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
