Question
NBC company is expected to pay a $1.60 per share dividend at the end of this year (i.e., D 1 =$1.60). The dividend is expected
NBC company is expected to pay a $1.60 per share dividend at the end of this year (i.e., D1=$1.60). The dividend is expected to grow at a constant rate of 7% a year from the current period to the foreseable future. The required rate of return on the stock, rs , is 15%. What is the price per share of NBC's stock today?
| 1. | $20.00 |
| 2. | $16.75 |
| 3. | $25.00 |
| 4. | $18.75 |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
