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) $7.50
C) $12.00
D) $14.50
Answer: B
Business
You might also like to view...
Zeke was a manager who believed that, in general, people disliked work; he believed people had to be forced or threatened with punishment to motivate them to work. Zeke believes in which of the following management theories?
a. Theory Z b. Theory X c. Theory Y d. Theory Q e. Theory T
Business
W3C is a foundation that helps develop standards that allow the full potential of the Web to be realized
Indicate whether the statement is true or false
Business