You are evaluating a company’s stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 for long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value?
Multiple Choice
$26.25
$22.50
$35.26
$50.25
None of these choices are correct.
You are evaluating a company’s stock. The stock just paid a dividend of $1.75. Dividends are...
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