Fast Wheels, Inc. expects to pay an annual dividend of $0.72 next year. Dividends have been growing at a compound annual rate of 6 percent and are expected to continue growing at that rate. What is the value of a share of Fast Wheels if similar stocks return 14 percent?
A) $9.00
B) $5.14
C) $9.54
D) none of the above
Correct Answer:
Verified
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