Question
QUESTION 16 The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 2.0% for 2 years,
QUESTION 16
The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 2.0% for 2 years, after which dividends are expected to grow at a rate of 5.0% forever. The firm's required return (r s) is 10.0%. What is the best estimate of the current stock price?
| a. | $30.75 | |
| b. | $38.16 | |
| c. | $41.70 | |
| d. | $32.30 | |
| e. | $40.48 |
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
