A company is forecasted to make a dividend payment of 660


A company is forecasted to make a dividend payment of $6.60 next year (T=1). Analysts expect the company will be able to increase dividend payments by 5.0% per annum in perpetuity (or indefinitely) and estimate the appropriate cost of equity is 10.0%. Using the appropriate dividend discount model for constant growth, one share of the stock is valued at __________.

A) $33.00 B) $66.00 C) $99.00 D) $132.00 E) $155.00

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Financial Management: A company is forecasted to make a dividend payment of 660
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