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Memphic Memphic
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6 years ago
Wyatt Oil presently pays no dividend. You anticipate Wyatt Oil will pay an annual dividend of $0.56 per share two years from today and you expect dividends to grow by 4% per year thereafter. IF Wyatt Oil's equity cost of capital is 12%, then the value of a share of Wyatt Oil today is:
A) $4.67
B) $5.00
C) $6.25
D) $7.00
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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Replies
wrote...
6 years ago
C
Explanation:  C) P0 =   +   = $6.25
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