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 $)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To find the price of the stock we can use the Gordon Growth Mo...
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Step: 2
Step: 3
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Introduction to Financial Accounting
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
11th edition
978-0133251111, 013325111X, 0133251039, 978-0133251036
