Question
DuPont paid its quarterly dividend of $0.50 on February 1, 2021. The company has a quarterly return on equity (ROE) of 1.50% and a retention
DuPont paid its quarterly dividend of $0.50 on February 1, 2021. The company has a quarterly return on equity (ROE) of 1.50% and a retention ratio of 40.0%. If the annual discount rate is 10% (quoted as an APR), what is the value of DuPonts stock based on the dividend discount model?
A. $5.35
B. $26.47
C. $12.27
D. $81.45
E. $45.24
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
