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You own a stock of YouEmDee Inc. You know that they just paid a dividend of 1 USD. You know that the growth rate of
You own a stock of YouEmDee Inc. You know that they just paid a dividend of 1 USD. You know that the growth rate of dividends for the next two years is 1%. Your required return on equity is 2% and remains 2% forever. What must the stock price be today? A. 99.9 USD B. 101.1 USD C. There is not enough information to know the stock price D. 99 USD E. 100 USD F. 101 USD
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