Question
The WCS Inc. is expected to pay $20 of dividend per share to its shareholders next year. Its dividends grow at a steady rate of
The WCS Inc. is expected to pay $20 of dividend per share to its shareholders next year. Its dividends grow at a steady rate of 3% per year forever. If the annual interest rate is 8%, what is the fair market value of the stock today? [Answer is rounded to dollars]
| A. | $100 | |
| B. | $200 | |
| C. | $300 | |
| D. | $400 | |
| E. | $500 | |
| F. | None of the above |
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Financial Accounting
Authors: Belverd E Needles, Marian Powers
10th Edition
0547193289, 9780547193281
