Multiple Choice
The In-Tech Co.just paid a dividend of $1 per share.Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter.If the required rate of return on the stock is 18%,what is the current value of the stock?
A) $12.97
B) $11.93
C) $15.20
D) $15.78
Correct Answer:
Verified
Correct Answer:
Verified
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