Multiple Choice
The Red Bud Co.just paid a dividend of €1.20 a share.The company announced today that it will continue to pay this constant dividend for the next 3 years after which time it will discontinue paying dividends permanently.What is one share of this equity worth today if the required rate of return is 7%?
A) €2.94
B) €3.15
C) €3.23
D) €3.44
E) €3.60
Correct Answer:
Verified
Correct Answer:
Verified
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