Distant Thunder, Inc paid a dividend of $5.00 per share on its common stock yesterday. Dividends
are expected to grow at a constant rate of 10% for the next two years, at which point the dividends
will begin to grow at a constant rate indefinitely.
If the stock is selling for $50 today and the
required return is 15%, what it the expected annual dividend growth rate after year two?
A) 5.000% B) 3.878% C) 4.556% D) 3.365%
D
You might also like to view...
Recently a company brought a miniature version of its cereal bars to market. The nugget-sized product was very successful because it was not messy. Another company then introduced a similar product under its own brand
Mini-cereal bars are most likely in the ________ stage of their product life cycle. A) introduction B) youth C) growth D) maturity E) extension
Which of the following is not a dimension of the Big Five taxonomy?
A. Conscientiousness B. Extraversion C. Locus of control D. Openness to experience E. Neuroticism