Question
Waste Management (WM) just paid a $3.14 dividend, and it is expected to grow at 6.25% for the next 4 years. After 4 years the
Waste Management (WM) just paid a $3.14 dividend, and it is expected to grow at 6.25% for the next 4 years. After 4 years the dividend is expected to grow at the rate of 4.26% indefinitely. If the required return is 7.77%, the value of the stock is closest to
A.
$200.65.
B.
$177.47.
C.
$146.41.
D.
$100.24.
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
