Multiple Choice
The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25 percent per year for the next three years and then 5 percent per year thereafter. If the required rate of return on the stock is 18 percent, 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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