Question
What is the implied stock price today for a company that is expecting to pay $3.25 per share in dividends next year, has a cost
What is the implied stock price today for a company that is expecting to pay $3.25 per share in dividends next year, has a cost of equity of 7.5%, a WACC of 6% and an expected future dividend growth rate of 4%?
A) $43.33.
B) $92.86.
C) $162.50.
D) $163.33.
Show your work please.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
