Question
A company just paid a dividend of $0.57 per share and you expect the dividend to grow at a constant rate of 6.9% per year
A company just paid a dividend of $0.57 per share and you expect the dividend to grow at a constant rate of 6.9% per year indefinitely into the future. If the required rate of return is 9.8% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.)
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
