The Last Dividend on Spirex Corporation's Common Stock Was $4

question 107

Multiple Choice

The last dividend on Spirex Corporation's common stock was $4.00,and the expected growth rate is 10 percent.If you require a rate of return of 20 percent,what is the highest price you should be willing to pay for this stock?

• A) $44.00
• B) $38.50
• C) $40.00
• D) $45.69
• E) $50.00

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