Multiple Choice
The In-Tech Co. has just paid a dividend of $1 per share. The dividends are expected to grow at 25% per year for the next three years and at the rate of 5% per year thereafter. If the required rate of return on the stock is 18%(APR) , what is the current value of the stock?
A) $12.97
B) $11.93
C) $15.20
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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