A Stock Is Expected to Pay a Year-End Dividend of $8

question 45

Multiple Choice

A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109.The risk-free interest rate is 4%,the expected market return is 12% and the stock has a beta of 0.8.What is the stock price today?

• A) $102.99.
• B) $98.73.
• C) $105.98.
• D) $109.00.

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FASB Accounting Standards Codification

The authoritative source of generally accepted accounting principles (GAAP) for public and private companies, established by the Financial Accounting Standards Board (FASB).

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