What is the intrinsic value of a company's stock if dividends are expected to grow at 5%> the most recent dividend was $1, and investors' required rate of return for this stock is 10%?

What is the intrinsic value of a company's stock if dividends are expected to grow at 5%> the most recent dividend was $1, and investors' required rate of return for this stock is 10%?


A. $20.00.

B. $21.00.

C. $22.05.



Answer: B


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