WWW Company currently (t = 0) earns $4.00 per share, and has a payout of 40 per cent. Dividends are expected to grow at a constant rate of 8 per cent per year. The required rate of return is 15 per cent. The price of this stock would be estimated at:
A) $57.14.
B) $22.86.
C) $10.67.
D) $24.69.
Correct Answer:
Verified
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