P. Noel Company's common stock has just paid a $2.00 dividend. If investors believe that the expected rate of return on P. Noel is 14% and that dividends will grow at the rate of 5% per year for the foreseeable future, what is the value of a share of P. Noel stock?
A) $15.00
B) $22.22
C) $23.33
D) $40.00
Correct Answer:
Verified
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