Multiple Choice
WWW Company currently (t = 0) earns $4.00 per share,and has a payout of 40 percent.Dividends are expected to grow at a constant rate of 4 percent per year.The required rate of return is 15 percent.The price of this stock would be estimated at
A) $57.14.
B) $22.86.
C) $15.13.
D) $24.69.
Correct Answer:
Verified
Correct Answer:
Verified
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