The Constant Growth Corporation (CGC) has expected earnings per share of $5. It has a history of paying cash dividends equal to 20% of earnings. The market capitalization rate for CGC’s stock is 15% per year, and the expected ROE on the firm’s future investments is 17% per year. Using the constant growth rate discounted dividend model, what is the model’s estimate of the present value of the stock?
A、$91.429;
B、$81.429;
C、$71.429;
D、$61.429
发布时间:2024-04-23 12:48:49