Solved

Shield Security Pays Annual Dividends and Has Just Paid This

Question 47

Multiple Choice

Shield Security pays annual dividends and has just paid this year's dividend of $1.20.If its equity cost of capital is 10%,and dividends are expected to grow by 5% per year in the future,what is the value of Shield's stock?


A) $24.00
B) $25.20
C) $12.60
D) $12.00
E) $26.00

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q17: Stocks that do not pay a dividend

Q18: If you value a stock using a

Q42: Use the information for the question(s)below.<br>Gonzales Corporation

Q43: Danforth Corp has a current stock price

Q44: If a manager wishes to raise his

Q46: Jessie Inc.is expected to pay an annual

Q49: Why is the disposition effect costly from

Q50: Sinclair <sup>Pharmaceuticals</sup>,a small drug company,develops a vaccine

Q51: Use the table for the question(s)below.<br> <img

Q52: Chittenden Enterprises has 632 million shares outstanding.It