Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Electric Car company just paid a dividend of $4.50. Analysts expect their dividends to grow at a rate of 10% for the next 3 years
Electric Car company just paid a dividend of $4.50. Analysts expect their dividends to grow at a rate of 10% for the next 3 years and then 3.25% thereafter. If investors require a 9.50% return on Electric Car company's stock, then what is the current price of their stock?
Group of answer choices
$88.99
$79.88
$87.75
$86.61
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started