Question
FFC stock is currently selling for $34.00. It is expected to pay a dividend of $2.00 at the end of the year. Dividends are expected
FFC stock is currently selling for $34.00. It is expected to pay a dividend of $2.00 at the end of the year. Dividends are expected to grow at a constant rate of 4.5% indefinitely. Compute the expected rate of return on FFC stock.
| 10.65% | ||
| 10.38% | ||
| 5.80% | ||
| 3.50% |
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Public Finance
Authors: Richard W. Tresch
4th Edition
0128228644, 978-0128228647
