Question
A firm has preferred stock outstanding. This stock has made constant dividend payments of $7.10. This stock has a beta of 1.5, the risk free
A firm has preferred stock outstanding. This stock has made constant dividend payments of $7.10. This stock has a beta of 1.5, the risk free rate is 4.8% and the market risk premium is 7.5%. Assuming this trend continues indefinetly, what is the intrinsic value of the stock in 14 periods, just after the 14th dividend is paid?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
