A firm is expected to have four years of g

问题单项选择题

A firm is expected to have four years of growth with a retention ratio of 100 percent. Afterwards the firm's dividends are expected to grow 4 percent annually, and the dividend payout ratio will be set at 50 percent. If earnings per share (EPS)=$2.4 in year 5 and the required return on equity is 10 percent, what is the stock's value today（）

A. $20.00.

B. $30.00.

C. $13.66.

答案

参考答案：C

解析：

Dividend in year 5 = (EPS) ( payout ratio) =2.4×0.5=1.2

P₄=1.2/(0.1-0.04)=1.2/0.06=$20

P₀=PV/(P₄)=$20/(1.10)⁴=$13.66