41.
Davis Company, Inc. (DCI) earned $5 a share last year and paid a dividend of $2 a share. The company is expected to grow by 8 percent annually and continue its payout ratio for the foreseeable future. An investor with an 11 percent required return expects to sell the stock at $75 two years from now. The maximum amount that an investor should be willing to pay for DCI stock today is closest to:
Select exactly 1 answers from the following:
A. $58.68. B. $64.71. C. $66.67. D. $70.47.
答案和详解如下！
Feedback: Correct answer: B
Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (South-Western, 2003), pp. 381-382 2006 Modular Level I, Vol. III, pp. 358-359 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)
The holding period is two years. The value of the stock:
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发表于 2006-11-21 12:17
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