Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.45 per share two years from today (T-2) and you expect dividends to grow by 3 4% per year thereafter. If Wyatt Oil's cost of equity capital is 11.4%, then the value of one share of Wyatt oil today is closest to OA. $5.63 OB. $3.55 OC. $5.05 OD. $0.45 OE. $3.95 OF. $4.53

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
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Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.45 per share two years from today (T-2) and you expect dividends to grow by 3.4% per year thereafter. If
Wyatt Oil's cost of equity capital is 11.4%, then the value of one share of Wyatt oil today is closest to:
OA. $5.63
OB. $3.55
OC. $5.05
OD. $0.45
OE. $3.95
OF. $4.53
H
Transcribed Image Text:Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.45 per share two years from today (T-2) and you expect dividends to grow by 3.4% per year thereafter. If Wyatt Oil's cost of equity capital is 11.4%, then the value of one share of Wyatt oil today is closest to: OA. $5.63 OB. $3.55 OC. $5.05 OD. $0.45 OE. $3.95 OF. $4.53 H
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