Question
A stock is expected to pay $2.96 per share every year indefinitely. The current price of the stock is $30.84. The equity cost of capital
A stock is expected to pay $2.96 per share every year indefinitely. The current price of the stock is $30.84. The equity cost of capital for the company is 7.20%. 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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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
