Saturday 27 October 2012

An annual dividend of $6.00 was just paid by Smart Consulting. The required return on Smart Consulting's stock is 14.05%. If dividends are expected to grow annually at 3.87% at what price should Smart Consulting's stock be selling according to the discounted dividend model? Answer a. $61.22 b. $42.70 c. $44.38 d. $61.08

An annual dividend of $6.00 was just paid by Smart Consulting. The required return on Smart Consulting's stock is 14.05%. If dividends are expected to grow annually at 3.87% at what price should Smart Consulting's stock be selling according to the discounted dividend model?
Answer
a. $61.22
b. $42.70
c. $44.38
d. $61.08



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