[Solved] Last Quarter, Tech Inc

Question 184
Multiple Choice
Question 184

Last quarter, Tech Inc. paid a dividend of $3 per share. Analysts suggest that the dividend will grow by 5% this year and every year hereafter. If you require a 10% rate of return, what price would you be willing to pay for a share of Tech Inc. stock?

A) $3.15.
B) $3.30.
C) $63.00.
D) $66.00.

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