You are considering the purchase of XYZ Company's ordinary shares which will pay a $1.00 per share dividend one year from the date of purchase.The dividend is expected to grow at the rate of 4% per year.If the appropriate discount rate for this investment is 14%,what is the price of one share of XYZ?
A) $7.14
B) $10.00
C) $25.00
D) Cannot be determined without maturity date
Correct Answer:
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