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?
A. $6.24. B. $7.31. C. $8.26.
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?
A. $6.24. B. $7.31. C. $8.26.
【正确答案】
B
【答案解析】Time line=$0 now; $0 in year 1; $0 inyear2; $1 in year 3.
