Multiple Choice
Bliley Plumbers pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.20 a share for three years commencing three years from today. After that time, the company plans on paying a constant $1 a share dividend indefinitely. How much are you willing to pay to buy a share of this stock if your required return is 15%?
A) $3.66
B) $3.94
C) $4.37
D) $4.71
E) $4.84
Correct Answer:
Verified
Correct Answer:
Verified
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