An investor is considering the purchase of a common stock with a $2.00 annual dividend. The dividend
Question:
An investor is considering the purchase of a common stock with a $2.00 annual dividend.
The dividend is expected to grow at a rate of 4 percent annually. If the investor’s required rate of return is 7 percent, the intrinsic value of the stock is closest to:
A. $50.00.
B. $66.67.
C. $69.33.
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Related Book For
Investments Principles Of Portfolio And Equity Analysis
ISBN: 9780470915806
1st Edition
Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard
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