What should be the current price of a stock if the expected dividend is $5,the stock has a required return of 20%,and a constant dividend growth rate of 6%?
A) $19.23
B) $25.00
C) $35.71
D) $37.86
Correct Answer:
Verified
Q91: Reinvesting earnings into a firm will not
Q92: What is the expected constant-growth rate of
Q93: What should be the current price of
Q94: An analyst who relies on past cycles
Q95: If it proves possible to make abnormal
Q97: According to random-walk theory,what are the (approximate)odds
Q98: In a valuation of a nonconstant dividend
Q99: The required return on an equity security
Q100: Research indicates that the correlation coefficient between
Q101: For corporate financial managers an important lesson
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents