An issue of common stock is expected to pay a dividend of $4.00 at the end of the year. Its growth rate is equal to 8%. If the required rate of return is 15%, what is its current price?
A) $103.68
B) $50.00
C) $26.67
D) none of the other answers are correct

Question

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The Answer of An issue of common stock is expected to pay a dividend of $4.00 at the end of the year. Its growth rate is equal to 8%. If the required rate of return is 15%, what is its current price?
A) $103.68
B) $50.00
C) $26.67
D) none of the other answers are correct

An Issue of Common Stock Is Expected to Pay a Dividend