Question
1. A) Suppose XYZ Company pays annual dividends of $1 per share of its stock. If the interest rate is 4%, at what price should
1. A) Suppose XYZ Company pays annual dividends of $1 per share of its stock. If the interest rate is 4%, at what price should this stock sell if you dont expect the dividend to grow over time?
B) Referring above, for how much should the stock sell if you expect the dividend to grow 2% per year?
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
