Security analyst uses the constant dividend growth model

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Suppose that a security analyst uses the constant dividend growth model to determine the theoretical share price of a corporation. The annual dividend just paid was $3.00 per share. The analyst assumes a required rate of return of investors of 15%, and a dividend growth rate of 5%. The share price should be _______. A. $20 B. $27 C. $40.50 D. $31.50 E. $21

Reference no: EM13878698

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