Question
The expected return on Natter Corporations stock is 14%. The stocks dividend is expected to grow at a constant rate of 8%, and it currently
The expected return on Natter Corporations stock is 14%. The stocks dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT?
A.) The stock price is expected to be $54 a share one year from now.
B.) The current dividend per share is $4.00.
C.) The stocks dividend yield is 8%.
D.) Management is probably not trying to maximize the price per share.
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
