Question
ABC will pay an annual dividend of $2.08 a share on its common stock next year. The company has just paid a dividend of $2.00
ABC will pay an annual dividend of $2.08 a share on its common stock next year. The company has just paid a dividend of $2.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of ABC common stock be worth ten years from now if the applicable discount rate is 8%?
A. 76.97
B. 83.25
C. 71.16
D. 74.01
E. 80.05
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
