The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are
expected to grow at a rate of 6% forever. Its required return (r ) is 12%.
What is the best estimate of the current stock price?

597

step-by-step explanation:

c. 27 units.

step-by-step explanation:

we are told that in circle a, ∠bae ≅ ∠dae.

we can see from our given diagram that in and ;

, as these are radii of our given circle.

therefore, by sas congruence postulate.

hence, side be will be equal to side de as corresponding parts of congruent triangles are congruent. so we can set an equation to find the value of x as:

now let us substitute x=17 in the expression for the length of be.

therefore, length of be will be 27 units and option c is the correct choice.

step-by-step explanation: