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Business, 14.04.2020 17:59 ericuh

A stock is expected to pay a $0.45 dividend at the end of the year (D1 = 0.45). The dividend is expected to grow at a constant rate of 4% a year, and the stock's required rate of return is 11%. What is the expected price of the stock 10 years from today?

a. $12.65
b. $ 9.15
c. $18.25
d. $ 9.52
e. $ 6.02

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A stock is expected to pay a $0.45 dividend at the end of the year (D1 = 0.45). The dividend is expe...
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