Question
1. A publicly traded firm just paid out a dividend (assume t=0 on the timeline) of $4/share, and it will continue to pay dividends forever.
1. A publicly traded firm just paid out a dividend (assume t=0 on the timeline) of $4/share, and it will continue to pay dividends forever.
a. What is the current price or value per share if its equity cost of capital is 10% per year and the dividends will increase or grow at a rate of 4.0%/year forever?
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Financial Freedom
Authors: Timothy Turner
1st Edition
1801573573, 978-1801573573
