单项选择题:
An analyst does research about dividend discount model and gathers the following information about a pany:Current dividend per share (D0) $2.80
Dividend growth rate 6.5%
Nominal risk-free rate 3.5%
Required risk premium 6.5%
Expected rate of inflation 1.5%
According to the dividend discount model (DDM), the value of a share is closest to:()
A. $59.64 B. $80.00 C. $85.20
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答案:C
解析: $2.80×(1+6.5%)/(3.5%+6.5%-6.5%)=$85.2。