An issue of common stock has just paid a dividend of $4.00. Its growth rate is equal to 8%. If the required rate of return is 13%, What is its current price?
A. $19.04
B. $80
C. $86.40
D. none of these
Answer:C
An issue of common stock has just paid a dividend of $4.00. Its growth rate is equal to 8%. If the required rate of return is 13%, What is its current price?
A. $19.04 B. $80 C. $86.40 D. none of these