Question
I'm stuck on this homework example. Please help. A stock just paid a dividend of D0= $1.50. The required rate of return is rs= 11.5%,
I'm stuck on this homework example. Please help.
A stock just paid a dividend of D0= $1.50. The required rate of return is rs= 11.5%, and the constant growth rate is g = 4.0%. What is the current stock price?
Select the correct answer.
a. $19.39b. $15.16c. $17.98d. $16.57e. $20.80
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
