What Would Be the Expected Price of a Stock When

question 33

Multiple Choice

What would be the expected price of a stock when dividends are expected to grow at a 25 percent rate for three years, and then grow at a constant rate of 5 percent, if the stock's required return is 13 percent and next year's dividend will be $4.00?

• A)$61.60
• B)$62.08
• C)$68.64
• D)$79.44

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