Question
A firm pays a $1.50 dividend at the end of year one (D1), has a stock price of $155 (P0), and a constant growth rate
A firm pays a $1.50 dividend at the end of year one (D1), has a stock price of $155 (P0), and a constant growth rate (g) of 10 percent.
a. If the expected growth rate increases:
Required rate of return =
b. If the stock price increases:
Dividend yield=
Required rate of return=
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Global Finance And Development
Authors: David Hudson
1st Edition
0415436354, 978-0415436359
