What is the expected constant growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 18 percent?

A) 3.41 percent
B) 9.26 percent
C) 5.50 percent
D) 12.5 percent

Answer: B) 9.26 percent

Business

You might also like to view...

Which of the following market segments is most likely to be considered attractive by a firm?

A) a market segment with many substitute products B) a market segment with limited product differentiation C) a market segment with low barriers to competitor entry D) a market segment with high price competition E) a market segment with cost-effective access to customers

Business

The value of ?2 varies between 0 and 1

Indicate whether the statement is true or false

Business