A Stock Just Paid a Dividend of D0 = $1

question 39

Multiple Choice

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?

• A) $23.11
• B) $23.70
• C) $24.31
• D) $24.93
• E) $25.57

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