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> Assume that investors require a rate of return of 10% to invest in a firm that pays a dividend of $2 per year.?

The price of the firm's stock is currently based on the assumption that the firm's dividend will remain constant. By how much will the price of the firm's stock increase if the firm begins to grow at a rate of2% per year and is expected to continue to do so indefinitely?

 a. $25 

 b. $20 

 c. $10 

 d. $5 

Logistics ERP Project Management Business Development Management
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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/08/05
Upvote (0) Views (14) Followers (7) Answers (7) Report Question
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Kedar Bhattarai
by Kedar Bhattarai , Accountant General , Sultha suplayers

Trial balance shows the arithmetic accuracy of ledger accounts whereas a balance sheet shows the financial position of an organization.

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

5 dollars

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Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

Thanks for the invitation,

I agree with the experts 

Ismael Hamad
by Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

................................................ d. $5..................................................................

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

5$ ........................... is ............................................right

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: d. $5. 

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