Question
1. What will be your expected return on a $140.00 stock that just paid a $8.00 dividend and is expected to grow at 11% forever?
1. What will be your expected return on a $140.00 stock that just paid a $8.00 dividend and is expected to grow at 11% forever?
2. A company is expected to pay dividends of $1.80, $1.89 and $1.98 over the next three years and the growth rate is expected to remain a constant 1% after year three. What would you pay for the stock with a 12% required return?
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The Restaurant From Concept to Operation
Authors: John R Walker
6th Edition
9781118139950, 470626437, 111813995X, 978-0470626436
