A Stock Currently Sells for $25 Per Share and Pays

question 7

Multiple Choice

A stock currently sells for $25 per share and pays $0.24 per year in dividends.What is an investor's valuation of this stock if she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?

• A) $30.24
• B) $26.30
• C) $26.09
• D) $27.74

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