7.3 Since dividends and share price grow at 5%, DIV =$51.05 $5.25, DIV =$5x1.05 = $5.51 P=$1001.05...

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7.3 Since dividends and share price grow at 5%, DIV =$51.05 $5.25, DIV =$5x1.05 = $5.51 P=$1001.05 = $115.76 DIV DIV DIV+P Po + 1+r (1+r) (1+r) $5.00 $5.25 $5.51+$115.76 + = $100 1.10 (1.102) (1.10)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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