Question
Stock XYZ has a current dividend of $5.00 . The dividend is expected to grow at 2.00% per year until year 3 and then at
Stock XYZ has a current dividend of $5.00 . The dividend is expected to grow at 2.00% per year until year 3 and then at 4.00% per year for the rest of time. Based on the riskiness XYZ, its discount rate is 10.00% . With this information, what is the price of XYZ in YEAR 1?
| $91.97 |
| $85.12 |
| $82.02 |
| $85.00 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
