Determining share of common stock


Winter Time Adventures is going to pay an annual dividend of $2.86 a share on its common stock next year. This year, the company paid a dividend of $2.75 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth five years from now if the applicable discount rate is 11.7 percent?

A. $43.45

B. $43.87

C. $44.15

D. $45.19

E. $47.00

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Finance Basics: Determining share of common stock
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