Question
A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $1.20 per share in three years. After
A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $1.20 per share in three years. After they begin, the dividends are expected to grow forever at a constant rate of 5.2% per year. If investors require a return of 12.4% per year to hold the stock, what is its intrinsic value per share?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
