Bolwork Inc

question 52

Multiple Choice

Bolwork Inc. is expected to pay a dividend of $5 per share next year. Bolwork's dividends are expected to grow by 3 percent annually. The required rate of return for Bolwork stock is 15 percent.Based on the dividend discount model, a fair value for Bolwork stock is $____ per share.

• A) 33.33
• B) 166.67
• C) 41.67
• D) 60

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