Using the Gordon growth model of stock prices, what is the price of a share of stock

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Using the Gordon growth model of stock prices, what is the price of a share of stock with an initial dividend equal to $6, if dividends grow at 2 percent and the interest rate is 5 percent?

A) $200

B) $333

C) $6.42

D) $6.18

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Jan 03, 2021 05:24 AM

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Using the Gordon growth model of stock prices, what is the price of a share of stock

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Fundamentals of Futures and Options Markets

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