Banana Company just paid a dividend of $5 per share. If dividends have a growth rate of 5 percent and you require 12 percent return, what is the value of the stock?
a. 71.42
b. 41.67
c. 43.75
d. 75
e. 105
Banana Company just paid a dividend of $5 per share. If dividends have a growth rate of 5 percent and you require 12 percent return, what is the value of the stock?
a. 71.42
b. 41.67
c. 43.75
d. 75
e. 105