The Next Dividend Payment (One Year from Now)by Bacon Signs

question 64

Multiple Choice

The next dividend payment (one year from now) by Bacon Signs Inc.,will be $2.50 per share.The dividends are anticipated to maintain a 2% growth rate,forever.If the required rate of return for Bacon Signs Inc.is 11%,what is the current price per share:

• A)$27.78.
• B)$28.33.
• C)$19.23.
• D)$19.62.

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