Multiple Choice O $59.45 $63.32

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
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Lohn Corporation is expected to pay the following dividends over the next four years:
$12, $9, $6, and $5. Afterward, the company pledges to maintain a constant 6 percent
growth rate in dividends forever.
If the required return on the stock is 15 percent, what is the current share price?
Multiple Choice
$59.45
$63.32
$55.36
$54.83
$5771
Transcribed Image Text:Lohn Corporation is expected to pay the following dividends over the next four years: $12, $9, $6, and $5. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price? Multiple Choice $59.45 $63.32 $55.36 $54.83 $5771
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