Long Life Floors Just Paid an Annual Dividend of $0

question 51

Multiple Choice

Long Life Floors just paid an annual dividend of $0.82 a share and plans on increasing future dividends by 2 percent annually.The discount rate is 15 percent.What will the value of this stock be 5 years from today?

• A) $6.96
• B) $7.04
• C) $7.10
• D) $7.18
• E) $7.25

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