Question
E. Bogue Fashions just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8
E. Bogue Fashions just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. Assuming 10-year U.S. Treasury bonds currently yield 2.30%, the market risk premium is 9.70% and Bogue has a beta of 1.0, what is one share of this stock worth to you today?
A. $15.76
B. $16.20
C. $16.31
D. $17.68
E. Priceless
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
1292018208, 978-1292018201
