A share of ordinary shares just paid a dividend of $3.25 per share. The expected long-run growth rate for this share is 18%. If investors require a rate of return of 24%, what should the price of the share be? a. $71.86 b. $57.51 c. $63.92 d. $62.25

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A share of ordinary shares just paid a dividend of $3.25 per share. The expected long-run growth rate for this share is 18%. If
investors require a rate of return of 24%, what should the price of the share be?
O a. $71.86
b. $57.51
c. $63.92
O d. $62.25
Transcribed Image Text:A share of ordinary shares just paid a dividend of $3.25 per share. The expected long-run growth rate for this share is 18%. If investors require a rate of return of 24%, what should the price of the share be? O a. $71.86 b. $57.51 c. $63.92 O d. $62.25
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