Question
A firm will pay a dividend of $5.05 per share next year and $6.15 in two years. You believe the company will be acquired for
A firm will pay a dividend of $5.05 per share next year and $6.15 in two years. You believe the company will be acquired for $68.00 per share in three years. What is the current stock price if the required return on similar stocks is 12%?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
