Multiple Choice
Suzi owns 100 shares of AB stock.She expects to receive a $238 in dividends next year.Investors expect 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
Q68: The expected return on a common stock
Q69: The liquidation value of a firm is
Q70: Which statement is correct?<br>A) The momentum factor
Q71: What is the value of the expected
Q72: What is the minimum amount shareholders should
Q74: If a firm unexpectedly raises its dividend
Q75: A firm's liquidation value is the amount:<br>A)
Q76: With respect to the notion that stock
Q77: When investors are not capable of making
Q78: What can be expected to happen when