单选题
An analyst gathered the following financial information about a
company:
| estimated EPS |
$2 |
| dividend payout ratio |
30% |
| required rate of return |
10% |
| expected long-term growth rate of dividends |
5% |
What should the analyst estimate
the value of this company's stock to be?
- A. $8.7
- B. $12.0
- C. $13.5