Answer to Question #1113 in Finance for Joel Smith

Question

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require a(n) 11% rate of return, what is the price of the stock?

(Points : 5)
$47.50
$49.00
$50.50
$52.00

Answer 1

$53.50