What Would Be the Approximate Expected Price of a Stock

question 137

Multiple Choice

What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years,then grow at a constant rate of 5%,if the stock's required return is 13% and next year's dividend will be $4.00?

• A) $61.60
• B) $62.08
• C) $68.62
• D) $79.44

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