Company C has a current share price of $1.25 and is expected to pay an annual dividend

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Company C has a current share price of $1.25 and is expected to pay an annual dividend of $0.15 next year. The dividend is expected to remain constant forever. Company D recently paid a dividend of $0.20 and this dividend is expected to grow at 5% p.a. forever. What should the price of Company D shares be if Company C's discount rate is applicable?

A. $2.80 B. $4.00 C. $3.00 D. $3.20

Posted Date: May 18, 2024 01:07 PM

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Company C has a current share price of $1.25 and is expected to pay an annual dividend

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