Alto stock pays an annual dividend of $1.10 a share and has done so for the past six years.No changes in the dividend amount are expected.The relevant market rate of return is 7.8 percent.Given this,one share of this stock:
A) is basically worthless as it offers no growth potential.
B) is valued as a constant growth stock.
C) is valued as a perpetuity.
D) is valued as a differential growth stock.
E) has a current market value of $1.10.
Correct Answer:
Verified
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