A Share of Common Stock Has Just Paid a Dividend

question 100

Multiple Choice

A share of common stock has just paid a dividend of $2.If the expected long-run growth rate for this stock is 15%,and if investors require a 19% rate of return,what is the price of the stock?

• A) $57.50
• B) $62.25
• C) $71.86
• D) $64.00
• E) $44.92