Multiple Choice
XCEL Corporation paid a dividend yesterday for $1.50. They expect to pay dividends annually at a constant 6 percent annual growth rate indefinitely. If the required rate of return on this investment is 12 percent, what is the current value of this common stock?
A) $1.50
B) $12.50
C) $13.25
D) $25.00
E) $26.50
Correct Answer:
Verified
Correct Answer:
Verified
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