Business Analyst MCQ
Equity Valuation
The XX Company paid a $1 dividend in the most recent period. The company is expecting dividends to grow at a 6% rate into the future. What is the value of this stock if an investor requires a 15% rate of return on stocks of this risk class?
The XX Company paid a $1 dividend in the most recent period. The company is expecting dividends to grow at a 6% rate into the future. What is the value of this stock if an investor requires a 15% rate of return on stocks of this risk class?
The XX Company paid a $1 dividend in the most recent period. The company is expecting dividends to grow at a 6% rate into the future. What is the value of this stock if an investor requires a 15% rate of return on stocks of this risk class?
A. $10.60.
B. $11.11.
C. $11.78.
Answer: C
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