If Next Year's Dividend Is Forecast to Be $5

question 51

Multiple Choice

If next year's dividend is forecast to be $5.00, the constant growth rate is 4 percent, and the discount rate is 16 percent, then the current stock price should be:

• A)$31.25
• B)$40.00
• C)$41.67
• D)$43.33 P_o =