Question
A stock is expected to pay $2.30 per share every year indefinitely. The current price of the stock is $27.78. The equity cost of capital
A stock is expected to pay $2.30 per share every year indefinitely. The current price of the stock is $27.78. The equity cost of capital for the company is 7.42%. What price would an investor be expected to pay per share 7 years into the future?.
NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
