Question
Dizzy Lizzy Meier common stock is valued using the constant growth model. The firm's dividend growth rate is 8%. If the current market price is
Dizzy Lizzy Meier common stock is valued using the constant growth model. The firm's dividend growth rate is 8%. If the current market price is $33.50 and investors require a 15% return, what is your estimate of the price four years from now?
A.$67.38
B.$45.58
C. $49.22
D.$94.31
E.Cannot solve without more information
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
