The stock of Popovich industries pays annual dividends that increase at 25% each year. Next year's dividend will be $1.10 per share. The question asks to calculate the discount rate on this stock based on the given information.
Popovich industries stock is valued et 1300 a share The fi.pdf
1. Popovich industries stock is valued et $1300 a share. The fimm pays annual divdends that
increese at a rate of 25 percent ennuelly. Next year's dividend wiil be $1,10 per share. What is the
discount tate on this stock? A. 10.96 percent B. 12.14 percent C. 1409 peroont D.11.67 percent E.
13.51 peroent