Question
Mersck is currently paying a dividend of $2. Its dividend growth rate will be 12% next year and will then drop to 7% for the
Mersck is currently paying a dividend of $2. Its dividend growth rate will be 12% next year and will then drop to 7% for the foreseeable future. The discount rate of Mersck is 13%. What is the stock price of Mersck?
| a. | $37.33 | |
| b. | $42.68 | |
| c. | $38.15 | |
| d. | $40.25 | |
| e. | $33.33 |
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
10th Edition
B010IKDQZM
