Danforth Corp Has a Current Stock Price of $117

question 43

Multiple Choice

Danforth Corp has a current stock price of $117.15 and is expected to pay a dividend of $4.50 in one year.If Danforth's equity cost of capital is 10%,what price would Danforth's stock be expected to sell for immediately after it pays the dividend?

• A)$124.37
• B)$128.87
• C)$121.65
• D)$112.65
• E)$113.06

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