Question: Suppose the current dividend is RM2 and the expected dividend growth rate is 5% for 10-years with no further payment. Applying the constant growth model,

Suppose the current dividend is RM2 and the expected dividend growth rate is 5% for 10-years with no further payment. Applying the constant growth model, what is the value of the stock, if the discount rate is 10%.

Select one:

A. RM15.62

B. RM42.00

C. RM21.00

D. RM14.10

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