a-stock-is-expected-to-pay-a-2-dividend-next-year-with-dividends-growing-at-4-an

Question

A stock is expected to pay a $2 dividend next year, with dividends growing at 4% annually. If the required rate of return is 8%, what is the price of the stock?

Accepted Answer

$50

Answer

$8

Answer

$25

Answer

$40

A stock is expected to pay a \$2 dividend next year, with dividends growing at 4% annually. If the required rate of return is 8%, what is the price of the stock?