Which is closest to the value of the stock


A stock will not pay dividends until three years from now. the dividend then will be $2.00 per share, the dividend payout ratio will be 40% and return on equity will be 15%. if the required rate of return is 12%, which on the following is closest to the value of the stock?

A. $27

B. 33

C. $53

D. $67

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Finance Basics: Which is closest to the value of the stock
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