A company has just paid a $1.00 dividend per share and dividends are expected to grow at a rate of 6% indefinitely. If the required return is 13%, what is the value of the stock today? O $30.29. O $15.14. O $32.25
A company has just paid a $1.00 dividend per share and dividends are expected to grow at a rate of 6% indefinitely. If the required return is 13%, what is the value of the stock today? O $30.29. O $15.14. O $32.25
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
am. 112.
Transcribed Image Text:A company has just paid a $1.00 dividend per share and dividends are expected to grow at a rate of 6% indefinitely. If the required return is
13%, what is the value of the stock today?
O $30.29.
O $15.14.
O $32.25
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