Question
Canada Inc. pays an annual dividend of $1.50 per share. If your required rate of return on an equity investment is 12%, and Canada Inc.'s
Canada Inc. pays an annual dividend of $1.50 per share. If your required rate of return on an equity investment is 12%, and Canada Inc.'s expected growth rate is 3%, what should be Canada Inc.'s price?
Select one:
a. $20.50
b. $12.50
c. $17.17
d. $16.67
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
