Monday 11 June 2012

Little feet Shoe Company just paid a dividend of $1.65 on its common stock.

Little feet Shoe Company just paid a dividend of $1.65 on its common stock. This company’s dividends are expected to grow at a constant rate of 3% indefinitely. If the required rate of return on this stock is 11%, compute the current value per share of this stock.
a. $15
b. $20.63
c. $21.25
d. $55

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