Question
Herbovore's Vegetarian Delites Corporation (HVD) plans to pay a dividend of $1.21. Dividends will grow at a rate of 4.00% for 4 years then return
Herbovore's Vegetarian Delites Corporation (HVD) plans to pay a dividend of $1.21. Dividends will grow at a rate of 4.00% for 4 years then return to the normal growth rate of 2.00% for the foreseeable future. If the required rate of return is 9.00%, what is the current price (P0) of a share of HVD common stock?
A. $18.19
B. $19.34
c. $4.14
D. $18.76
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Personal Finance For Musicians
Authors: Bobby Borg
1st Edition
1538163306, 978-1538163306
