单选题
The following data pertains to an investor"s stock:
The stock will pay no dividends for two years.
The dividend three years from now is expected to be $1.
Dividends are expected to grow at a 7% rate from that point onward.
If the investor requires a 17 percent return on their investments, how much will the investor be willing to pay for this stock now?
The stock will pay no dividends for two years.
The dividend three years from now is expected to be $1.
Dividends are expected to grow at a 7% rate from that point onward.
If the investor requires a 17 percent return on their investments, how much will the investor be willing to pay for this stock now?
【正确答案】
B
【答案解析】Time line=$0 now; $0 in year 1; $0 inyear2; $1 in year 3.
