单选题
An analyst has made the following estimates for a stock:
| dividends over the nest year |
$0.3 |
| long-term growth rate |
14% |
| intrinsic value of stock |
$17 |
The shares are currently priced
at $14. Assuming the stock price moves to intrinsic value over the next year,
what is the expected return on the stock?
- A. 9.6%
- B. 18.5%
- C. 23.6%