9.9. The value of a share of stock is the present value of its future dividends. If

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9.9. The value of a share of stock is the present value of its future dividends. If the next dividend, occurring one year from now, is $2 per share and dividends, paid annually, are expected to grow at 3 percent per year, what is the value of a share of stock if the discount rate is 7 percent?

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Financial Markets And Corporate Strategy

ISBN: 9780071157612

2nd Edition

Authors: Mark Grinblatt, Sheridan Titman

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