The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever.

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The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever. What comes closest to the price per share of stock XYZ if it just paid an annual dividend of $4? Assume the discount rate of 6%.

66.7

100

200

208

Related Book For answer-question

Financial Management Principles and Applications

ISBN: 978-0134417219

13th edition

Authors: Sheridan Titman, Arthur J. Keown, John H. Martin

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Posted Date: Dec 09, 2022 03:10 AM

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The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever.

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Financial Management Principles and Applications

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