Gamma Corp. is expected to pay the following dividends over the next four years: $7.50, $8.25, $15, and $1.80. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required return is 14 percent, what is the current share price?

A. $35.20
B. $31.06
C. $38.18
D. $32.30
E. $34.90

Ans: A. $35.20

Business

You might also like to view...

Research demonstrates that transformational leadership yields positive results in several areas, including which of the following?

a. levels of intrinsic motivation, group cohesion and work engagement b. leadership effectiveness and employee job satisfaction c. measures of organizational effectiveness d. employe individualism and enhanced workforce identification

Business

At the ________ level of an organization, information systems provide key performance indicators (KPIs) that are focused on balancing performance across the organization

A) illusive B) operational C) tactical D) managerial E) executive

Business