Question
The last dividend on Riverhawk Corporation's common stock was $3.00, and the expected constant growth rate is 10 percent. If you require a rate of
The last dividend on Riverhawk Corporation's common stock was $3.00, and the expected constant growth rate is 10 percent. If you require a rate of return of 20 percent, what is the highest price you should be willing to pay for this stock?
| a. | $ 44.00 | |
| b. | $ 38.50 | |
| c. | $ 55.00 | |
| d. | $ 33.00 | |
| e. | $ 49.50 | |
| f. | $ 60.50 |
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Business Finance
Authors: Eddie McLaney
11th Edition
1292134402, 9781292134406
