Multiple Choice
The Merriweather Co. just announced that it will pay a dividend next year of $1.60 and is establishing a policy whereby the dividend will increase by 2.5% annually thereafter. How much will one share be worth five years from now if the required rate of return is 15%?
A) $14.12
B) $14.48
C) $14.84
D) $15.60
E) $15.78
Correct Answer:
Verified
Correct Answer:
Verified
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