Which of the Following Amounts Is Closest to What Should

question 54

Multiple Choice

Which of the following amounts is closest to what should be paid for Overland common stock? Overland has just paid a dividend of $2.25. These dividends are expected to grow at a rate of 5% in the foreseeable future. The required rate of return is 11%.

• A) $20.45
• B) $21.48
• C) $37.50
• D) $39.38
• E) $47.70

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