Question
A stock has just payed its annual dividend at $1.1/share. The dividend payments are expected to stay at the current growth path of 1.3% per
A stock has just payed its annual dividend at $1.1/share. The dividend payments are expected to stay at the current growth path of 1.3% per year indefinitely. Investors require a return of 7.1% for this type of stock. What is the price?
(Round your answer to the nearest $)
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
