Question
A non-dividend paying company is expected to begin paying dividends, 5 years from now. The expected dividend at that time will be $1.25 and their
A non-dividend paying company is expected to begin paying dividends, 5 years from now. The expected dividend at that time will be $1.25 and their growth rate is expected to be constant 6.5% forever. If the required return on this company is 13.5%, what is the value of the stock today?
| $13.66 | ||
| $10.76 | ||
| $20.71 | ||
| $16.16 | ||
| $17.78 Will Rate. Thank you!! |
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
