单选题
The following information is available about a company:
| Next years sales revenue | $180 million |
| Next year's net profit margin | 15% |
| Dividend payout ratio | 60% |
| Dividend growth rate expected during Years 2 and 3 | 25% |
| Dividend growth rate expected after Year 3 | 5% |
| Investors' required rate of return | 12% |
| Number of outstandinq shares | 8.1million |
The current value per share of the company's common stock according to the two-stage dividend discount model is closest to:
【正确答案】
C
【答案解析】
Net profit margin = Net earnings/Sales
Net earnings = Net profit margin × Sales;
Dividends per share (Dn ) = (Net earnings × Payout ratio)/Number of outstanding shares;
Therefore, D1 = ($180 million × 0.15 × 0.60)/8.1 million = $2.00
D2 = $2.00(1 + 0.25)= $2.50 D3= $2.00(1 + 0.25) = $3.13
D4 = $2.00(1 + 0.25)2= $3.28
