Solved

Cyberdyne Systems Just Paid a Dividend of $1

Question 49

Multiple Choice

Cyberdyne Systems just paid a dividend of $1.32 on its common stock,and the next dividend will be paid one year from now.You require a return of 6%.What is the market price of this stock if dividends are paid annually in perpetuity and grow at the rate of 2.62% per year forever?


A) $15.31
B) $15.71
C) $22.58
D) $39.05
E) $40.08

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents