Spooner Corporation's Next Dividend Is Expected to Be $6

question 209

Multiple Choice

Spooner Corporation's next dividend is expected to be $6. Dividend growth is estimated at 25%, 20%, 10% and then stabilize to 3%. If the rate of return is 10%, determine the stock price next year.

• A) $97.71
• B) $98.31
• C) $98.91
• D) $99.51
• E) $100.11

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