DK Corporation currently does not pay a dividend but plans to makes its first dividend payment of $2 in 3 years,DK then plans to pay 40% of its ROE in dividends once they commence.If the appropriate is discount rate is 20% and DK expects and ROE of 22%,what is the current stock price today?
A) $ 19.27
B) $ 20.42
C) $ 33.29
D) $ 35.29
Correct Answer:
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