The Boston House increases its dividend each year. The next annual dividend is expected to be $2.25 a share. Future dividends will increase by 5.0 percent annually. What is the current value of this stock if the discount rate is 13 percent?
A)$28.91
B)$28.13
C)$28.78
D)$29.00
E)$29.17

Question

Quizplus · Accepted Answer

The Answer of The Boston House increases its dividend each year. The next annual dividend is expected to be $2.25 a share. Future dividends will increase by 5.0 percent annually. What is the current value of this stock if the discount rate is 13 percent?
A)$28.91
B)$28.13
C)$28.78
D)$29.00
E)$29.17

The Boston House Increases Its Dividend Each Year