A stock is currently trading at $35.00 and the last dividend it paid was $2.05. The...

 

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A stock is currently trading at $35.00 and the last dividend it paid was $2.05. The constant growth rate is expected to be 3%. The return on the stock is closest to: 5.86%. 8.86%. 9.03% Question 18 A stock does not currently pay dividends and is expected to pay its first dividend in 5 years. Analysts expect that dividend to be $10.00/share and grow at a 3% rate. If the appropriate rate of return for the stock is 12%, what is the value of the stock today? $70.61 2 pts O $78.71 O $111.11 A stock is currently trading at $35.00 and the last dividend it paid was $2.05. The constant growth rate is expected to be 3%. The return on the stock is closest to: 5.86%. 8.86%. 9.03% Question 18 A stock does not currently pay dividends and is expected to pay its first dividend in 5 years. Analysts expect that dividend to be $10.00/share and grow at a 3% rate. If the appropriate rate of return for the stock is 12%, what is the value of the stock today? $70.61 2 pts O $78.71 O $111.11

Answer rating: 100% (QA)

The option c is right option Explanation Price of stock P 35 Last Dividend D0 205 Constant growth ra... View the full answer