Using the Gordon Growth Formula, If D₁ Is $1

question 78

Multiple Choice

Using the Gordon growth formula, if D₁ is $1.00, k_e is 10 percent or 0.10, and g is 5 percent or 0.05, then the current stock price is ________.

• A) $10
• B) $20
• C) $30
• D) $40

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