Multiple Choice
What is the value of a share of stock of HOV Inc. to an investor who requires a 12 percent rate of return if HOV's current dividend is $1.20? Assume earnings and dividends are expected to grow at a compound annual rate of 7 percent.
A) $24.00
B) $18.34
C) $25.68
D) $19.62
Correct Answer:
Verified
Correct Answer:
Verified
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