Question
Stock XYZ has a current dividend of $2.00 . The dividend will grow for 3 periods at a rate of 5% . From period 3
Stock XYZ has a current dividend of $2.00 . The dividend will grow for 3 periods at a rate of 5% . From period 3 onward , dividends will grow at a rate of 1% . Based on the riskiness for XYZ company, the discount rate for its stock is 4.00% . Given the information provided, what is the current price of XYZ stock ?
A $79.18 B $69.29 C $77.95 D $75.41
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
