How much stock worth if want twelve percent rate of return

Reference no: EM132816528

Problem 1: America Inc. paid a dividend of $2.50 recently. It has maintained a dividend growth rate of 7% in the past and expects to maintain that indefinitely. How much is the stock worth if you want 12% rate of return?

A. $45.00

B. $53.50

C. $55.75

D. $47.50

E. $42.50

F. $50.00

Reference no: EM132816528

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