Chapter 4 The Value of Common Stocks

11. WorldTour Co. has just now paid a dividend of $6 per share (Do), the dividends are expected to grow at a constant rate of 5% per year forever. If the required rate of return on the stock is 15%, what is the current value on stock, after paying the dividend? A) $63 . B) $56 . C) $40 . D) $48 . Answer: A. Type: Medium. Page: 64 ................
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