Question: QUESTION AA Co . has forecasted its next dividend ( to be paid in one year ) to be $200 per share . It is

QUESTION AA Co . has forecasted its next dividend ( to
be paid in one year ) to be $200 per share .

QUESTION AA Co . has forecasted its next dividend ( to be paid in one year ) to be $200 per share . It is expected that dividends will grow at 4 % indefinitely . Assuming a discount rate of 12% what is the current price of AA Co . ? $16 66 $2500 $ 20.00 $2600

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