Problemhuang companys last dividend was 125 the dividend, Ask an Expert

Accounting

Problem:

Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever.

Required:

If the firm's required return (rs) is 11%, what is its current stock price?

Choose one answer.

A. $31.52

B. $30.57

C. $32.49

D. $33.50

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169084

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