Question
Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends will grow at a 4% rate forever, and investors require an 11% return on their investment in this stock. What should the stock’s price be?
$18.18 $28.57 $29.71 $31.71
$18.18 $28.57 $29.71 $31.71
Answers
28.57
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