Multiple Choice
Using the stock valuation formula calculate the value of a share of stock if it is expected to pay $5 in dividends,in addition the dividends are expected to grow at a rate of 4 percent forever,and the investor's required rate of return is 12 percent.
A) $18.75
B) $39.75
C) $62.50
D) $68.50
Correct Answer:
Verified
Correct Answer:
Verified
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