Question
Zappers Electric Co. just paid $4 per share in dividends and are expected to grow at a constant rate of 7% per year forever. How
Zappers Electric Co. just paid $4 per share in dividends and are expected to grow at a constant rate of 7% per year forever. How much should the stock be selling for if the required rate of return is 15.5%?
| a. | $16.54 | |
| b. | $47.06 | |
| c. | $43.76 | |
| d. | $50.35 | |
| e. | $61.54 |
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Public Finance
Authors: Harvey S Rosen, Ted Gayer
9th International Edition
0071267883, 9780071267885
