
Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 15.6 percent?
A) $10.38
B) $9.52
C) $9.04
D) $9.28
E) $10.02
Correct Answer:
Verified
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