Question
Burke Tires just paid a dividend of D0 = $1.30. Analysts expect the company's dividend to grow by 20% this year, by 15% in Year
Burke Tires just paid a dividend of D0 = $1.30. Analysts expect the company's dividend to grow by 20% this year, by 15% in Year 2, grow by 10% in Year 3 and at a constant rate of 6% in Year 4 and thereafter. The required return on this low-risk stock is 10.00%. What is the best estimate of the stock's current market value?
| $43.67 | ||
| $45.15 | ||
| $47.75 | ||
| $48.91 | ||
| $50.99 |
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
