Multiple Choice
XanEx is a new firm that just paid an annual dividend of $1 a share.The firm plans to increase its dividend by 10 percent a year for the next 4 years and then decrease the growth rate to 2 percent annually.If the required rate of return is 18.25 percent,what is one share of this stock worth today?
A) $8.05
B) $8.19
C) $11.05
D) $11.19
E) $14.81
Correct Answer:
Verified
Correct Answer:
Verified
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