Multiple Choice
Company XYZ just paid a $2 dividend, and future dividends are expected to grow at a rate of 4%forever. If the required rate of return on similar stocks is 12%, what is the value of a share of stockin Company XYZ?
A) $16.67
B) $12.50
C) $25.00
D) $26.00
Correct Answer:
Verified
Correct Answer:
Verified
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