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alex41 [277]
2 years ago
14

The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and

it currently sells for $50 a share. Which of the following statements is CORRECT? Group of answer choices The stock's dividend yield is 8%. The stock's dividend yield is 7%. The stock price is expected to be $57 a share one year from now. The current dividend per share is $4.00. The stock price is expected to be $54 a share one year from now.
Business
1 answer:
AlladinOne [14]2 years ago
5 0

Answer: The stock price is expected to be $57 a share one year from now.

Explanation:

The stock price is expected to be $57 a share one year from now.

Expected return = 14%

current share price= $50

expected share price in a year from now = $50 x (1 + 0.14)

expected share price in a year from now = 57

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Data provided in the question:

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= [ ( D0 × ( 1 + g  ) ) ÷ $36.72 ] + 0.022

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or

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