Chapter 4 The Value of Common Stocks
Page: 65. 13. Mcom Co. is expected to pay a dividend of $4 per share at the end of year one and the dividends are expected to grow at a constant rate of 4% forever. If the current price of the stock is $25 per share calculated the required rate of return or the market capitalization rate for the firms' stock. A) 4% . B) 16% . C) 20% . D) None ... ................
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