Question
You find a stock that just paid a dividend of $2.20 that is expected to grow at 25% per year for the next three years,
You find a stock that just paid a dividend of $2.20 that is expected to grow at 25% per year for the next three years, then a constant 6%. If the required return of the stock is 11%, what should be the price of the stock today?
A. $91.09
B. $75.02
C. $77.22
D. $85.75
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
