What is the current value of sullivans international tours


Sullivan's International Tours Incorporated currently pays a $3.00 common stock dividend. Dividends have been recently growing at a 4 percent annual rate and are expected to continue growing at this rate for the foreseeable future. Sam is considering an investment in Sullivan's International Tours and plans to hold the stock for just one year, at which time he expects to sell the stock for $45. What is the current value of Sullivan's International Tours' common stock to Sam if he requires a 14 percent rate of return?

A. $40.00

B. $42.21

C. $49.99

D. $50.00

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Financial Management: What is the current value of sullivans international tours
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