Question
The current dividend (Do) from Films, Inc. is $1.14 per share. Dividends have been growing at a constant rate of 7% per year, and this
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The current dividend (Do) from Films, Inc. is $1.14 per share. Dividends have been growing at a constant rate of 7% per year, and this trend is expected to continue. If the required rate of return is 10%, what is the maximum price an investor should pay for the stock?
a. $43.32
b. $38.00
c. $12.67
d. $40.67
The current dividend (Do) from Films, Inc. is $1.14 per share. Dividends have been growing at a constant rate of 7% per year, and this trend is expected to continue. If the required rate of return is 10%, what is the maximum price an investor should pay for the stock?
| a. | $43.32 | |
| b. | $38.00 | |
| c. | $12.67 | |
| d. | $40.67 |
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven M. Mintz, Roselyn E. Morris
5th edition
1259969460, 73403997, 1260480852, 978-1259969461
