Question
A company has announced that it will pay a dividend of $2.77 per share next year, and thereafter you expect the dividend to grow at
A company has announced that it will pay a dividend of $2.77 per share next year, and thereafter you expect the dividend to grow at a constant rate of 6.1% per year indefinitely into the future. If the required rate of return is 12.6% per year, what would be a fair price for the stock today? (Answer to the nearest penny.)
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
