单选题
A firm is expected to have four years of growth with a retention ratio of 100 percent. Afterwards the firm"s dividends are expected to grow 4 percent annually, and the dividend payout ratio will be set at 50 percent. If earnings per share (EPS)=$2.4 in year 5 and the required return on equity is 10 percent, what is the stock"s value today?
【正确答案】
C
【答案解析】Dividend in year 5 = (EPS) ( payout ratio) =2.4×0.5=1.2
P
4
=1.2/(0.1-0.04)=1.2/0.06=$20
P
0
=PV/(P
4
)=$20/(1.10)
4
=$13.66