Evaluating price of the stock


A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require a(n) 11% rate of return, what is the price of the stock?

  • $47.50
  • $49.00
  • $50.50
  • $52.00
  • $53.50

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Finance Basics: Evaluating price of the stock
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