Multiple Choice
Mega Inc. is expected to pay a dividend of $2.00 per share next year. The dividends are expected togrow at a constant rate of 5% per year indefinitely. If investors require a 12% return on Mega stock,what is the current price?
A) $32.00
B) $16.67
C) $30.00
D) $28.57
Correct Answer:
Verified
Correct Answer:
Verified
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