Question
Stark Corporation just paid a dividend of $2.15. You expect the dividend to grow at 14% for the next two years, and then the dividend
Stark Corporation just paid a dividend of $2.15. You expect the dividend to grow at 14% for the next two years, and then the dividend will grow at 4% for the foreseeable future. You estimate the appropriate discount rate is 9.80%. Using this information you estimate the current price for Stark is closest to:
| A. | $48.02. | |
| B. | $61.99. | |
| C. | $52.25. |
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Chemical Principles
Authors: Steven S. Zumdahl, Donald J. DeCoste
7th edition
978-1111580650
