Question
A common share just paid a dividend of D 0 = $3.00. The required rate of return is r s = 10.0%, and the constant
A common share just paid a dividend of D0 = $3.00. The required rate of return is rs = 10.0%, and the constant growth rate is g = 5.0%. What is the current share price?
| a. | 66.00 | |
| b. | 69.00 | |
| c. | 72.00 | |
| d. | 63.00 |
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
