Toronto Skates Inc.is paying dividends on its common shares on a regular basis with a constant growth rate.The dividend last year was $1.00 and this year the dividend is $1.25.If the required rate of return is 12%, what is the current price of the common share?
A) $10.42
B) $8.33
C) 5.00
D) Cannot be calculated
Correct Answer:
Verified
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