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2. Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% therea fter, Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ? ↓ Do (1) $37,47 (2) $38,47 (3) $39,47 (4) $40.47 (5) $41,47

2. Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% therea fter, Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ? ↓ Do (1) $37,47 (2) $38,47 (3) $39,47 (4) $40.47 (5) $41,47

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 16P
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2. Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% therea fter, Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ? ↓ Do (1) $37,47 (2) $38,47 (3) $39,47 (4) $40,47 (5) $41,47
Transcribed Image Text:2. Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% therea fter, Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ? ↓ Do (1) $37,47 (2) $38,47 (3) $39,47 (4) $40,47 (5) $41,47
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