Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This
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Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 13.7 percent?
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First calculate the growth rate from 2000 to 2012 F...View the full answer
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Related Book For
Finance Applications And Theory
ISBN: 9781264101580
6th Edition
Authors: Marcia Cornett, Troy Adair, John Nofsinger
Question Posted:
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This model assumes that the required rate of return will remain the same for the foreseeable future and also assumes that the growth rate is going to be constant. The same results will be obtained using the sustainable growth rate formula that states g = b x ROI
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