Question
KK Company is expected to pay a dividend in year 1 of $1.30, a dividend in year 2 of $1.50, and a dividend in year
KK Company is expected to pay a dividend in year 1 of $1.30, a dividend in year 2 of $1.50, and a dividend in year 3 of $2.00. After year 3, dividends are expected to grow at the rate of 10% per year. An appropriate required return for the stock is 15%. The value of the KK stock today is closest to
| A. | $37.12 | |
| B. | $32.51 | |
| C. | $55.00 | |
| D. | $40.76 |
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
5th Edition
0131445650, 9780131445659
