A Stock Just Paid a Dividend of $1

question 50

Multiple Choice

A stock just paid a dividend of $1.15,has a required rate of return of 10%,and a constant dividend growth rate of 3%.What price should this stock be selling for?

• A) $16.92
• B) $15.20
• C) $8.50
• D) $8.20
• E) $17.15

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