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KB Adventures Will Pay an Annual Dividend of $3

Question 194

Multiple Choice

KB Adventures will pay an annual dividend of $3.15 a share on their common stock next week. Last year, the company paid a dividend of $3.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth ten years from now if the applicable discount rate is 12.5%?


A) $42.00
B) $56.78
C) $65.16
D) $68.41
E) $71.83

Correct Answer:

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