Chapter 5 Valuing Stocks - Donuts

Chapter 5—Valuing Stocks MULTIPLE CHOICE ... Bavarian Sausage just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. If the required return on the stock investment is 14%, what should be the price of the ... after the first dividend was paid? a. $6.24 b. $19.69 c. $16.28 d. $21.19 ANS: B ................
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