ABC common stock is expected to have extraordinary growth of 20 percent per year for two years, at which time the growth rate will settle into a constant 6 percent. If the discount rate is 15 percent and the most recent dividend was $2.50, what should be the current share price?
A) $47.77
B) $37.39
C) $31.16
D) $33.23
Ans: B) $37.39
Business
You might also like to view...
________ involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or recover
A) DSS B) DFE C) Sustainability vision D) New clean technology E) Pollution prevention
Business
Describe geographic information systems
What will be an ideal response?
Business