Value of Dividends and Future Price a Firm Is Expected

question 8

Multiple Choice

Value of Dividends and Future Price A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year.Financial analysts believe the stock will be at their target price of $75.00 in two years.Compute the value of this stock with a required return of 10 percent.

• A)$65.40
• B)$66.67
• C)$65.57
• D)$79.14

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