Candy Co is expected to pay dividends of 2.00 per share for the next two years (dividend in year 1 will be 2.00 and dividends in year two will also be 2.00). In the end of this two-year period and thereafter the constant growth rate of stock dividends is expected as 3%. The required rate of return is 13%. What should be the stock price of Candy co today? Answer Choices 20.60 24.33 19.47 22.60

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Candy Co is expected to pay dividends of 2.00 per share for the next two years (dividend in year 1 will be 2.00 and dividends in year two will also be 2.00). In the end of this two-year period and thereafter the constant growth rate of stock dividends is expected as 3%. The required rate of return is 13%. What should be the stock price of Candy co today? Answer Choices 20.60 24.33 19.47 22.60
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