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riadik2000 [5.3K]
3 years ago
10

The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for t

he past 15 years and is expected to remain constant. Given this, one share of James River Co. stock:
A. is valued as if the dividend paid is a perpetuity
B. has a market value equal to the present value of $1.50 paid one year from today
C. is basically worthless as it offers no growth potential
D. is valued with an assumed growth rate of 3%
E. has a market value of $15.00.
Business
1 answer:
Svet_ta [14]3 years ago
7 0
I think the answer is B.
Hope this help
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