If next year's dividend is forecast to be $5.00, the constant growth rate is 4 percent, and the discount rate is 16 percent, then the current stock price should be:

A) $41.67
B) $40.00
C) $31.25
D) $43.33

Ans: A) $41.67

Business

You might also like to view...

In recent years, marketers have increased the use of free standing inserts (FSI) for the distribution of samples

Indicate whether the statement is true or false

Business

To be successful in using financially-based incentives to encourage online purchases, the incentives:

A) must match the target market of the website B) should offer something free C) apply all customers, not just first time purchasers D) should be meaningful to those visiting the website and be changed periodically

Business