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Two companies, A and B, are in the same risk class. Company A pays a constant dividend of $4 per year and is selling in
Two companies, A and B, are in the same risk class. Company A pays a constant dividend of $4 per year and is selling in the market for $35 per share. Company B just paid a dividend of $3.25 per share. If its dividends are growing at a constant rate of 8 percent per year, what is the market price of B?
102.37 |
33.18 |
35.00 |
94.79 |
57.21 |
64.78 |
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