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A Great Company (AGC) is expected to pay a ( $ 3.00 ) dividend at the end of this year (assume the end of the
"A Great Company" (AGC) is expected to pay a ( $ 3.00 ) dividend at the end of this year (assume the end of the year is 1 year from now). Assume you expect AGC's dividend to then grow in subsequent years by ( 6 % ) each year forever and that AGC's equity cost of capital is ( 10 % ) and its WACC is ( 13 % ). Using this information, estimate the price for a share of AGC stock. Select the answer that is closest to the estimated price. ( $ 16 ) ( $ 75 ) ( $ 79.5 ) ( $ 42.86 ) 
"A Great Company" (AGC) is expected to pay a $3.00 dividend at the end of this year (assume the end of the year is 1 year from now). Assume you expect AGC's dividend to then grow in subsequent years by 6% each year forever and that AGC's equity cost of capital is 10% and its WACC is 13%. Using this information, estimate the price for a share of AGC stock. Select the answer that is closest to the estimated price. $16 $75 $79.5 $42.86
"A Great Company" (AGC) is expected to pay a ( $ 3.00 ) dividend at the end of this year (assume the end of the year is 1 year from now). Assume you expect AGC's dividend to then grow in subsequent years by ( 6 % ) each year forever and that AGC's equity cost of capital is ( 10 % ) and its WACC is ( 13 % ). Using this information, estimate the price for a share of AGC stock. Select the answer that is closest to the estimated price. ( $ 16 ) ( $ 75 ) ( $ 79.5 ) ( $ 42.86 )
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
