Multiple Choice
You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 for long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value?
A) $26.25
B) $22.50
C) $35.26
D) $50.25
E) None of these choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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