Question
A REIT currently pays a dividend of $8 per share. The dividend is projected to increase by 5% next year and continue to increase by
A REIT currently pays a dividend of $8 per share. The dividend is projected to increase by 5% next year and continue to increase by 5% per year thereafter. Assuming a required rate of return of 12%, what value would the Dividend Discounted Cash Flow method provide?
a. 100
b. 160
c. 70
d. 120 never mind
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
