Question
Lohn Corporation is expected to pay the following dividends over the next four years: $9, $6, $3, and $2. Afterward, the company pledges to maintain
| Lohn Corporation is expected to pay the following dividends over the next four years: $9, $6, $3, and $2. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. |
| If the required return on the stock is 12 percent, what is the current share price? |
Multiple Choice
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$38.68
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$36.75
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$39.84
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$37.91
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$46.27
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
