QUESTION $16$

A share of common stock just paid a dividend $($D$0)$ of $$7\mathrm{.}00$ per share. If the expected long$-$run growth rate for this stock is $6\%,$ and if investors$$ required rate of return is $10\%,$ what is the stock price?

A$.$

$$92\mathrm{.}75$

B$.$

$$106\mathrm{.}00$

C$.$

$$119\mathrm{.}25$

D$.$

$$132\mathrm{.}50$

E$.$

$$145\mathrm{.}75$

F$.$

$$159\mathrm{.}00$

G$.$

$$172\mathrm{.}25$

H$.$

$$185\mathrm{.}50$