using Equation 14

问题如下：

Mylandia Corporation pays an annual dividend to its shareholders, and its most recent payment was CAD2.40. Analysts following Mylandia expect the company’s dividend to grow at a constant rate of 3 percent per year in perpetuity. Mylandia shareholders require a return of 8 percent per year. The expected share price of Mylandia is closest to:

选项：

A.

CAD48.00.

B.

CAD49.44

C.

CAD51.84

解释：

B is correct. Mylandia’s next expected dividend is CAD2.472 (=2.40×1.03), and using Equation 14,