Red Sun Rising just paid a dividend of $2.64 per share. The company said that it will
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Question:
Red Sun Rising just paid a dividend of $2.64 per share. The company said that it will increase the dividend by 30 percent and 25 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.4 percent. If the required return is 12.2 percent, what is the stock price today?
A. $44.80
B. $43.10
C. $46.51
D. $40.04
E. $25.00
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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