Multiple Choice
Casino Inc. expects to pay a dividend of $3 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 18 percent, what is the current value of the stock today?
A) $25
B) $50
C) $100
D) $54
Correct Answer:
Verified
Correct Answer:
Verified
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