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Whistle Stop Pays a Constant Annual Dividend of $4 on Its

Question 81

Multiple Choice
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?

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:

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