Multiple Choice
Using the stock valuation formula calculate the value of a share of stock if it is expected to pay $15 in dividends,in addition the dividends are expected to grow at a rate of 8 percent forever,and the investor's required rate of return is 10 percent.
A) $6.50
B) $750
C) $12.00
D) $14.50
Correct Answer:
Verified
Correct Answer:
Verified
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