Little feet Shoe Company just paid a dividend of $1.65 on its common stock - 3425

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  • Posted on: Fri 23 Mar, 2012
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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 

Solution Description

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