Question
A stock has just paid a $2.50 dividend from earnings per share of $4.00. The required rate of return on this stock is 15%. If
A stock has just paid a $2.50 dividend from earnings per share of $4.00. The required rate of return on this stock is 15%. If the dividend is expected to grow at a constant rate, what is the price of the stock today? What do you expect the price to be in 1 year?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
