Question
A stock is expected to pay $6 per share every year indefinitely. The current price of the stock is $600. The equity cost of capital
A stock is expected to pay $6 per share every year indefinitely. The current price of the stock is $600. The equity cost of capital for the company is 15%. What price would an investor be expected to pay per share 3 years into the future?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
