Question
Q 14 Company produces dividends in four consecutive years (starting with year 1) of 0.20, 0.42, 0.66 and 0.82, respectively. The dividend in year five
Q 14
Company produces dividends in four consecutive years (starting with year 1) of 0.20, 0.42, 0.66 and 0.82, respectively. The dividend in year five is estimated to be 0.96 and should grow in perpetuity at 6%. Given a discount rate of 12%, what is the price of the stock?
| $11.67 | ||
| $10.22 | ||
| $16.00 | ||
| $11.67 | ||
| $16.76 |
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Money Talks Explaining How Money Really Works
Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer
1st Edition
0691202893, 978-0691202891
