Multiple Choice
Blanton Consulting Inc.just paid a $2.00 per share dividend.The firm also announced that it anticipates a long-run growth in dividends of 3% per year.Inflation is also expected to be 3% per year,and the firms required rate of return on common stock is 11%.What is the current price per share of the firm's stock?
A) $14.71
B) $14.29
C) $25.75
D) $25.00
Correct Answer:
Verified
Correct Answer:
Verified
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