What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a dividend of $2.50 per year? The next dividend will be paid in exactly 1 year.The required rate of return is 11%.
A) $19.52
B) $21.50
C) $22.73
D) $25.22
E) None of the above.
Correct Answer:
Verified
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