Better estimate of stock current market value, Finance Basics

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Better estimate of stock current market value

Nachman Industries just paid a dividend of D0 = $4.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

A. $161.46

B. $132.39

C. $196.98

D. $175.99

E. $150.15

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Finance Basics: Better estimate of stock current market value

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Recent Questions Asked Finance Basics

Q : Calculating the disregard flotation costs

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Ask an Expert for Answer!!

Finance Basics: Better estimate of stock current market value

Reference No:- TGS055104

Recent Questions Asked Finance Basics

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