What is the estimated price of Once in a Blue Moon stock that has the following dividends? The return on similar investments is 18%. (Round the growth rate to the nearest whole percent.) $$\begin{array} { | l | l | }
\hline \text { YEAR } & \text { DIIDENDS } \
\hline 2014 & \$ 2.50 \
\hline 2013 & \$ 2.48 \
\hline 2012 & \$ 2.36 \
\hline 2011 & \$ 2.32 \
\hline
\end{array}$$
A) $17
B) $13
C) $22
D) $50

Question

What is the estimated price of Once in a Blue Moon stock that has the following dividends? The return on similar investments is 18%. (Round the growth rate to the nearest whole percent.) $$\begin{array} { | l | l | } 
\hline \text { YEAR } & \text { DIIDENDS } \
\hline 2014 & \$ 2.50 \
\hline 2013 & \$ 2.48 \
\hline 2012 & \$ 2.36 \
\hline 2011 & \$ 2.32 \
\hline
\end{array}$$
A) $17
B) $13
C) $22
D) $50

Quizplus · Accepted Answer

The dividend growth rate is 4%. The estimated price of the stock is $17.

What Is the Estimated Price of Once in a Blue