Question
Stock in Rochella Luxury Bag Inc. is expected to pay a $2.25 dividend next year and grow at a constant 4% per year. If you
Stock in Rochella Luxury Bag Inc. is expected to pay a $2.25 dividend next year and grow at a constant 4% per year. If you require a 10% rate of return to invest in Rochella, how much is this stock worth to you?
| A. | 24.75
| |
| B. | 35.25 | |
| C. | 37.5
| |
| D. | 39.0
| |
| E. | 22.5
|
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
