Question
A company has an odd dividend policy. The company will pay a dividend of $3 per share next year and has announced that it will
A company has an odd dividend policy. The company will pay a dividend of $3 per share next year and has announced that it will increase dividend by $5 per share for each of the subsequent four years and then maintains a constant 2% growth rate. If you require a return of 8 percent on the company's stock.
How much will you pay for a share today?
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The Basics Of Public Budgeting And Financial Management
Authors: Charles E. Menifield
4th Edition
0761872116, 978-0761872115
