Consider this scenario. During the early 2000s, the Midwestern United States experienced a drought, or lack of rainfall. This ru
2 answers:
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Answer:
d. The stock's price one year from now is expected to be 5% above the current price
Explanation:
From the dividend grow model we got that price of a share is:
next year the dividend will be higher in proportion to dividend growth:
Thus, we can rearrenge as:
This makes d statement correct.