XYZ Corporation's Next Dividend Is Expected to Be $3 Per

question 83

Multiple Choice

XYZ Corporation's next dividend is expected to be $3 per share. Dividend growth rate has been at 2% and expected to be so into the future. If investor's return is 10%, calculate the stock price in year 4.

• A) $39.4
• B) $40.0
• C) $40.6
• D) $41.2
• E) $41.8

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