Multiple Choice
A firm does not pay a dividend. It is expected to pay its first dividend of $1.00 per share in two years. This dividend will grow at 5 percent indefinitely. Using a 12 percent discount rate, compute the value of this stock.
A) $12.76
B) $12.19
C) $11.96
D) $11.39
Correct Answer:
Verified
Correct Answer:
Verified
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