Question
Washington Industries stock currently sells for $40 a share. It just paid a dividend of $1.64 a share (that is, D 0 = $1.64). The
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Washington Industries stock currently sells for $40 a share. It just paid a dividend of $1.64 a share (that is, D 0 = $1.64). The dividend is expected to grow at a constant rate of 5.7 percent a year. What stock price is expected 1 year from now?
a. $37.84
b. $40.00
c. $42.28
d. $44.01
e. $46.09
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Financial Asset Pricing Theory
Authors: Claus MUNK
1st Edition
0198716451, 978-0198716457
