Business Analyst MCQ
Equity Valuation
An analyst estimates that a stock will pay a $2 dividend next year and that it will sell for $40 at year-end. If the required rate of return is 1 5%, what is the value of the stock?
An analyst estimates that a stock will pay a $2 dividend next year and that it will sell for $40 at year-end. If the required rate of return is 1 5%, what is the value of the stock?
An analyst estimates that a stock will pay a $2 dividend next year and that it will sell for $40 at year-end. If the required rate of return is 1 5%, what is the value of the stock?
A. $33.54.
B. $36.52.
C. $43.95.
Answer: B
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