EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Mandarin County Choppers, Incorporated, is experiencing rapid growth. The company expects dividends to grow at 16
percent per year for the next 10 years before leveling off at 6 percent into perpetuity. The required return on the company's
stock is 11 percent. If the dividend per share just paid was $1.87, what is the stock price?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
✓ Answer is complete but not entirely correct.
Stock price
$
87.25 X
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