Question
Macrosoft paid a dividend of $10 per share today (i.e., D=$10). The dividends are anticipated to maintain a 10 percent growth rate per year forever.
Macrosoft paid a dividend of $10 per share today (i.e., D=$10). The dividends are anticipated to maintain a 10 percent growth rate per year forever. The next dividends will be paid one year from today. If the Macrosoft stock currently sells for $100, what is the required rate of return on the Macrosoft stock?(Hint: Please pay attention to the timing.)
A. 11.6% B. 18.0% C. 18.8% D. 20.0% E. 21.0%
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Financial Intelligence For IT Professionals
Authors: Karen Berman, Joe Knight, John Case
1st Edition
1422119149, 9781422119143
