Question
NBC company is expected to pay a $2.50 per share dividend at the end of this year (i.e., D 1 =$2.50). The dividend is expected
NBC company is expected to pay a $2.50 per share dividend at the end of this year (i.e., D1=$2.50). The dividend is expected to grow at a constant rate of 6% 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. | $25.00 | |
| 2. | $27.78 | |
| 3. | $25.75 | |
| 4. | $20.00 |
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
