A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is r, = 10.5%, and the expected constant growth rate is g = 6.3%. What is the stock's current price? $17.86 $21.43 $22.32 $13.39 $14.46

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 20PROB
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Question 29
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is r3 =
10.5%, and the expected constant growth rate is g = 6.3%. What is the stock's current price?
O $17.86
O $21.43
$22.32
$13.39
$14.46
Transcribed Image Text:Question 29 A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is r3 = 10.5%, and the expected constant growth rate is g = 6.3%. What is the stock's current price? O $17.86 O $21.43 $22.32 $13.39 $14.46
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