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A share of stock has the following characteristics. What is the price of the stock? Use the constant dividend growth model to answer this. Current
| A share of stock has the following characteristics. What is the price of the stock? | ||||
| Use the constant dividend growth model to answer this. | ||||
| Current Dividend (D0) = | $2.00 | per share | ||
| Expected dividend growth (g) = | 3.0% | per year | ||
| Required Rate of Return (rs) = | 8.0% | |||
| Answers: | ||||
| a. | $21.86 | |||
| b. | $34.97 | |||
| c. | $41.20 | |||
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Dynamics Of International Finance
Authors: Ruchi Mehrotra Joshi
1st Edition
1685078389, 978-1685078386
