Question
12. What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return
12. What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return on equity investments is 15%, and the stock is expected to be worth $20 one year from now? (hint: one-period holding)
A) $18.65 C) $17.68 B) $19.13 D) $20.15
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
