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Question 45 0/4 pts A stock currently does not pay an annual dividenD) An investor expects this policy to remain in force. She believes, however,
Question 45 0/4 pts A stock currently does not pay an annual dividenD) An investor expects this policy to remain in force. She believes, however, the stock of this company will sell for $110.00 per share four years from now. If she has an interest (discount) rate of 7% (0.07), the dividend discount model predicts the current price of this stock should be: nswer $83.92 ered you cannot apply the model to this example since it requires a dividend be offered. $82.00 $86.35
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