6. Milton Information Services currently pays a dividend of $4 per share on its common stock. The...

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6. Milton Information Services currently pays a dividend of $4 per share on its common stock. The dividend is expected to grow at 4% per year forever. Stocks with similar risk currently are priced to provide a 12% expected return. What is the intrinsic value of Milton stock?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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