44．An analyst gathered the following information about a common stock:

If the stock's annual dividend is expected to remain at $2.10, the value of the stock is closest to:

Select exactly 1 answers from the following:
A. $19.09. B. $30.00. C. $52.50. D. $70.00.
答案和详解如下！
Feedback: Correct answer: A

Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (Dryden, 2003), pp. 376?84

2006 Modular Level I, Vol. III, pp. 353-360

Study Session 13-55-c

calculate and interpret the value of a preferred stock, or of a common stock, using the dividend discount model (DDM)

If the dividend is expected to remain constant, the value of the stock is determined by dividing the amount of the dividend by the required rate of return for the stock:

$2.10 / 0.11 = $19.09.

[此贴子已经被作者于2006-11-23 7:59:34编辑过]

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