A share of stock expected to pay an annual dividend of $10 forever has a market price of __________ when the Treasury bond rate is 6% and the stock has a risk premium of 4%.
A) $100.00
B) $166.67
C) $250.00
D) $500.00

Question

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The Answer of A share of stock expected to pay an annual dividend of $10 forever has a market price of __________ when the Treasury bond rate is 6% and the stock has a risk premium of 4%.
A) $100.00
B) $166.67
C) $250.00
D) $500.00

A Share of Stock Expected to Pay an Annual Dividend