A stock is expected to pay a $4.00 dividend per share. The growth rate is expected to be −1 percent. If investors demand 8 percent on this stock, what is the expected price of the stock three years from now?
A) $54.68
B) $52.17
C) $41.06
D) $43.12

Question

Quizplus · Accepted Answer

The Answer of A stock is expected to pay a $4.00 dividend per share. The growth rate is expected to be −1 percent. If investors demand 8 percent on this stock, what is the expected price of the stock three years from now?
A) $54.68
B) $52.17
C) $41.06
D) $43.12

A Stock Is Expected to Pay a $4