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Jennifer purchased a share of ABC one year ago at a price of $5.50. The company just paid 50 cents dividend per share and the
Jennifer purchased a share of ABC one year ago at a price of $5.50. The company just paid 50 cents dividend per share and the next year's dividend will be paid in one year. The discount rate of ABC's shares is 10% per year and dividend growth rate is 2% per year. What price should the share be sold at if ABC's annual dividends will remain constant perpetually? $6.25 $6.60 $6.38 $9.24 $5.82
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