Lohn Corporation Is expected to pay the following dividends over the next four years: $10, $7, $5, and $3. Afterward, the company pledges to maintaln a constant 5 percent growth rate in dividends forever. ir the required return on the stock is 10 percent, what is the current share price? Multiple Choice $63.71 $65.62 $62.16 $60.53 $69.80

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Lohn Corporation is expected to pay the following dividends over the next four years:
$10, $7, $5, and $3. Afterward, the company pledges to maintain a constant 5 percent
growth rate in dividends forever.
If the required return on the stock is 10 percent, what is the current share price?
Multiple Cholce
$63.71
$65.62
$62.16
$60.53
$69.80
Transcribed Image Text:Lohn Corporation is expected to pay the following dividends over the next four years: $10, $7, $5, and $3. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price? Multiple Cholce $63.71 $65.62 $62.16 $60.53 $69.80
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