Question
A stock expects to pay a dividend of $1 in year one and $2 in year two. From that point onward, dividends are expected to
A stock expects to pay a dividend of $1 in year one and $2 in year two. From that point onward, dividends are expected to grow by 10% per year forever. What is the fair price for this stock if it has a required return of 14%?
a) $27.25 b) $36.33 c) 44.75 d)$55
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
