The Western State Company's Common Stock Is Expected to Pay

question 124

Multiple Choice

The Western State Company's common stock is expected to pay a $2.00 dividend in the coming year.If investors require a 17% return and the growth rate in dividends is expected to be 8%,what will the market price of the stock be?

• A) $11.76
• B) $24.00
• C) $23.11
• D) $22.22

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