Question
A company has announced that it will pay a dividend of $2.01 per share next year, and thereafter you expect the dividend to grow at
A company has announced that it will pay a dividend of $2.01 per share next year, and thereafter you expect the dividend to grow at a constant rate of 5.7% per year indefinitely into the future. If the required rate of return is 8.3% per year, what would be a fair price for the stock today? (Answer to the nearest penny.)
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Teaching Public Budgeting And Finance
Authors: Meagan M. Jordan, Bruce D. McDonald III
1st Edition
1032146680, 978-1032146683
