Question
A share just paid a dividend of $0.30.The dividend is expected to increase at an annual rate of 4% forever.If the required return is 10%,
A share just paid a dividend of $0.30.The dividend is expected to increase at an annual rate of 4% forever.If the required return is 10%, what is a fair value of this share today?
a. $5.20
b. $5.50
c. $3.12
d. $5.00
e.$0.31
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
