If a stock's dividend is expected to grow at a constant rate of 4 percent in the future and it has just paid a dividend of $6.00 per share,and you have an alternative investment of equal risk that will earn a 7 percent rate of return,what would you be willing to pay per share for this stock today?
A) $6.66
B) $54.55
C) $200.00
D) $208.00
Correct Answer:
Verified
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