Question
A stock is expected to pay $3 dividend in one year from today and its dividend is expected to grow at a constant rate 9%.
A stock is expected to pay $3 dividend in one year from today and its dividend is expected to grow at a constant rate 9%. If the beta for this stock is 1.75, risk free return is 1%, and market risk premium is 8%, what is the current fair value of this stock today and what is the fair value of this stock 6 years from now?
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ISE Business Accounting
Authors: Frank Wood, Alan Sangster
8th Edition
9780273638407
