Question
A common stock will pay a cash dividend of $2 next year. After that, the dividends are expected to increase indefinitely at 2% per year.
A common stock will pay a cash dividend of $2 next year. After that, the dividends are expected to increase indefinitely at 2% per year. If the discount rate is 7%, what is the PV of the stream of dividend payments?
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
