Gamma Corp

question 98

Multiple Choice

Gamma Corp.is expected to pay the following dividends over the next four years: $7.50, $8.25, $15, and $1.80.Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends, forever.If the required return is 14 percent, what is the current share price?

• A)$35.20
• B)$31.06
• C)$38.18
• D)$32.30
• E)$34.90

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