Question
Question 7 Suppose a company has just paid an annual dividend of $2.00 per share. The company expects to grow this dividend at an annual
Question 7
Suppose a company has just paid an annual dividend of $2.00 per share. The company expects to grow this dividend at an annual rate of 3.0%. The cost of capital for this stock is 10%. What is the price of the stock today?
| a. $18.14 | ||
| b. $18.90 | ||
| c. $22.88 | ||
| d. $27.96 | ||
| e. $29.43 |
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
