Author Question: If a company pays a dividend of 5 to be received one year from now, dividends are expected to grow ... (Read 50 times)

vicotolentino · **on:** Jun 29, 2018

If a company pays a dividend of 5 to be received one year from now, dividends are expected to grow at a rate of 8 percent per year for the indefinite future, and the interest rate is 14 percent, the price of the company's stock should be ________

per share.
A) 8.00 B) 83.33 C) 227.27 D) 610.00

Question 2

A future payment's present value is

A) the value in today's dollars of funds to be paid or received in the future.
B) the value in today's dollars of funds to be paid or received today.
C) the value in a future date's dollars of funds to be paid or received today.
D) the value in a future date's dollars of funds to be paid or received in the future.