Question
At the end of this year Futuristics, Inc. expects to pay a dividend equal to $1.50. The company is expected to grow at a constant
At the end of this year Futuristics, Inc. expects to pay a dividend equal to $1.50. The company is expected to grow at a constant rate equal to 4 percent for the remainder of its life. If the current market value of Futuristics stock is $15, what is the rate of return that investors require to buy the company's stock? A. 13.0% B. 12.6% C. 10.0% D. 15.4% E. 14.0%
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
