Waste Management (WM) just paid a $3.14 dividend, and it is expected to grow at 6.25% for the next 4 years. After 4 years the dividend is expected to grow at the rate of 4.26% indefinitely. If the required return is 7.77%, the value of the stock is closest to A. $200.65. B. $177.47. C. $146.41. D. $100.24.

Waste Management (WM) just paid a $3.14 dividend, and it is expected to grow at 6.25% for the next 4 years. After 4 years the dividend is expected to grow at the rate of 4.26% indefinitely. If the required return is 7.77%, the value of the stock is closest to A. $200.65. B. $177.47. C. $146.41. D. $100.24.

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

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