The Fish House Increases Its Dividend Each Year

question 42

Multiple Choice

The Fish House increases its dividend each year. The next annual dividend is expected to be $2.21 a share. Future dividends will increase by 3.5 percent annually. What is the current value of this stock if the discount rate is 12 percent?

• A) $24.91
• B) $25.05
• C) $25.78
• D) $26.00
• E) $26.18

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