Multiple Choice
Value of Future Cash Flows A firm recently paid a $1.00 annual dividend.The dividend is expected to increase by 10 percent in each of the next four years.In the fourth year,the stock price is expected to be $100.If the required rate for this stock is 14 percent,what is its value?
A) $25.00
B) $36.60
C) $62.87
D) $72.30
Correct Answer:
Verified
Correct Answer:
Verified
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