Using the stock valuation formula calculate the value of a share of stock if it is expected to pay $5 in dividends, in addition the dividends are expected to grow at a rate of 4 percent forever, and the investor's required rate of return is 12 percent

A) $18.75
B) $39.75
C) $62.50
D) $68.50


Answer: C

Business

You might also like to view...

Today, projects are the modus operandi or the method used for implementing organizational strategy.

Answer the following statement true (T) or false (F)

Business

The “why” statement is often referred to as ______.

a. audience response b. audience feedback c. audience relevance d. audience analysis

Business

Arbitrage is the process of buying in one market and selling in another market in order to make a

riskless profit. Indicate whether the statement is true or false

Business

The documentary letter of credit is a modern commercial practice devised by the United Nations Commission on International Trade Law

Indicate whether the statement is true or false

Business