An issue of common stock is expected to pay a dividend of $4.80 at the end of the year. Its growth rate is equal to 8%. If the required rate of return is 13%, what is its current price?
A) $103.68
B) $36.92
C) $96.00
D) none of the other answers are correct

Question

Quizplus · Accepted Answer

The Answer of An issue of common stock is expected to pay a dividend of $4.80 at the end of the year. Its growth rate is equal to 8%. If the required rate of return is 13%, what is its current price?
A) $103.68
B) $36.92
C) $96.00
D) none of the other answers are correct

An Issue of Common Stock Is Expected to Pay a Dividend