Heavenly hotels inc will not pay any dividends for the next

Reference no: EM13484310 , Length: 5

Heavenly Hotels, Inc. will not pay any dividends for the next three years. Heavenly will pay its first dividend of $2.00 per share at the end of year four and its dividends will stay the same forever. The required rate of return on the company's common stock is 10%. What price should the stock be selling now?

a. $20

b. $16

c. $12

d. $15

Reference no: EM13484310

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