Question
The expected return on Natter Corporations stock is 18%. The stocks dividend is expected to grow at a constant rate of 10%, and it currently
The expected return on Natter Corporations stock is 18%. The stocks dividend is expected to grow at a constant rate of 10%, 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 stock price is expected to be $57 a share one year from now. | ||
| c. The stocks dividend yield is 8%. | ||
| d. The stocks dividend yield is 7%. | ||
| e. The stock price is expected to be $55 a share one year from now. |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
