A Particular Common Stock Has an Annual Cash Dividend of $4

question 4

Multiple Choice

A particular common stock has an annual cash dividend of $4 per share and is predicted to have a market value of $60 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:

• A) $40.00
• B) $52.41
• C) $75.16
• D)$112.42

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