Multiple Choice
Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for $46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%?
A) $38.19
B) $42.63
C) $40.53
D) $45.77
Correct Answer:
Verified
Correct Answer:
Verified
Q59: If no price change occurs in a
Q61: What happens to a firm that reinvests
Q65: What should be the current price of
Q72: What is the minimum amount shareholders should
Q84: What is the expected constant-growth rate of
Q88: The dividend discount model should not be
Q91: If The Wall Street Journal lists a
Q93: The value of common stock will likely
Q95: Which group of investors is capable of
Q101: Based on the random walk theory,if a