Jaycee Martinez
New member
I can't figure this one out at all.........
Question:
What would you pay for a share of ABC Corporation stock five years from now if all future dividends will be $2 per share, and your required rate of return on equity is 9%?
Choice of my answers are as follows:
A. 40.00
B. 88.88
C. 25.25
D. 22.22
Any ideas on this? I have more like it and have to understand them before I have to go in and take the final exam.
Thanks much!!
Question:
What would you pay for a share of ABC Corporation stock five years from now if all future dividends will be $2 per share, and your required rate of return on equity is 9%?
Choice of my answers are as follows:
A. 40.00
B. 88.88
C. 25.25
D. 22.22
Any ideas on this? I have more like it and have to understand them before I have to go in and take the final exam.
Thanks much!!